Which of the Following Audit Procedures Is an Auditor Most

question 69

Multiple Choice

Which of the following audit procedures is an auditor most likely to perform in testing controls related to management's assertion about the occurrence of sales?

• A)Verify that extensions and footings on the entity's sales invoices and monthly customer statements have been recomputed.
• B)Inspect the entity's reports of pre-numbered shipping documents that have not been recorded in the sales journal.
• C)Compare the invoiced prices on pre-numbered sales invoices to the entity's authorized price list.
• D)Vouch sales entries in sales journal to supporting shipping documents.

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Definitions:

Labour Relations Boards

Bodies established by governments to adjudicate disputes between employers and unions, overseeing labor laws and collective bargaining agreements.

Regulations Violated

Instances where individuals, companies, or other entities act against established rules or laws.

Collective Bargaining Law

Legislation that governs the negotiation process between employers and groups of employees aimed at establishing working conditions and terms of employment.

Union Shop

A workplace where new employees must join the union.