The Auditor Is Concerned That a Client Is Failing to Bill

question 18

Multiple Choice

The auditor is concerned that a client is failing to bill customers for shipments. An audit procedure that would gather relevant evidence would be to

• A) select a sample of duplicate sales invoices and trace each to related shipping documents.
• B) trace a sample of shipping documents to related duplicate sales invoices.
• C) trace a sample of Sales Journal entries to the Accounts Receivable subsidiary ledger.
• D) compare the total of the Schedule of Accounts Receivable with the balance of the Accounts Receivable account in the general ledger.

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Definitions:

Shape

The external form, contours, or outline of an object or figure.

Brachioradialis

A muscle of the forearm that flexes the forearm at the elbow.

Orientation

The awareness of the relationship between oneself and one's environment, including identity, location, and time.

Lever Systems

Mechanisms in the body that enable movement, involving bones (levers), muscles (forces), and joints (fulcrums).