Below Are Five Audit Procedures, All of Which Are Tests

question 35

Essay

Below are five audit procedures, all of which are tests of transactions associated with the audit of the sales and collection cycle. Also below are the six general transaction-related audit objectives and the five management assertions. For each audit procedure, indicate (1) its audit objective, and (2) the management assertion being tested.

1. Vouch recorded sales from the sales journal to the file of bills of lading.
(1) ________.
(2) ________.
2. Compare dates on the bill of lading, sales invoices, and sales journal to test for delays in recording sales transactions.
(1) ________.
(2) ________.
3. Account for the sequence of prenumbered bills of lading and sales invoices.
(1) ________.
(2) ________.
4. Trace from a sample of prelistings of cash receipts to the cash receipts journal, testing for names, amounts, and dates.
(1) ________.
(2) ________.
5. Examine customer order forms for credit approval by the credit manager.
(1) ________.
(2) ________.

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Definitions:

Anthropologists

Scientists who study human behavior, culture, and societies, both past and present, through various perspectives and methods.

Superstructure

A society's shared sense of identity and worldview. The collective body of ideas, beliefs, and values by which a group of people makes sense of the world- its shape, challenges, and opportunities- and understands their place in it. This includes religion and national ideology.

Worldview

The collective body of ideas that members of a culture generally share concerning the ultimate shape and substance of their reality.

Ultimate Shape

The final or most advanced state of development or evolution something achieves, after undergoing various changes or processes.