Which of the Following Audit Procedures Would Normally Be Best

question 73

Multiple Choice

Which of the following audit procedures would normally be best expected to test the completeness objective (assertion) for sales?

• A) Compare shipping documents with sales records.
• B) Apply gross profit rates to inventory disposed of during the period.
• C) Trace payments received subsequent to the balance sheet date.
• D) Send accounts receivable confirmation requests.

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Definitions:

Annual Interest

The amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed.

Montreal Bond Market

A marketplace for the trading of bonds issued within or by entities located in Montreal, Canada, or related to its economy.

Liquidity

The measure of how easily assets can be converted into cash with little impact on their value; crucial for the smooth operation of financial markets.

Smaller Corporation

A smaller-sized company with lower revenue and fewer employees compared to larger corporations within the same industry.