An Auditor Selects a Sample of Shipping Documents in Order

question 32

Multiple Choice

An auditor selects a sample of shipping documents in order to determine if the related sales invoices were prepared. This test would gather evidence concerning which audit objective?

• A) Completeness
• B) Detail tie-in
• C) Occurrence
• D) Realizable value

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Definitions:

Accumulated Depreciation

The cumulative depreciation expense charged to a fixed asset from the time it first became operational.

Net Noncurrent Assets

The total value of a company’s long-term assets minus any liabilities directly associated with those assets.

Accumulated Depreciation

The cumulative reduction in the value of a tangible asset due to wear and tear over time.

Earnings Per Share

A financial metric that divides a company's net income by the number of its outstanding shares, indicating how much money each share makes.