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Which of the following audit procedures will best uncover an understatement of sales and accounts receivables?

A. Test a sample of sales transactions, selecting the sample from pre numbered shipping documents.

 

B. Test a sample of sales transactions, selecting the sample from sales invoices recorded in the sales journal.

 

C. Confirm accounts receivable.

 

D. Review the aged receivable trial balance.

 

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Question added by Riaz Ahammed , Financial Accountant , UTC Climate Controls & Security
Date Posted: 2015/04/11
Iftikhar Hussain Shah
by Iftikhar Hussain Shah , Senior Manager Audit & Assurance , Deloitte LLP

Option A is correct. Test a samples of sales transactions, selecting the samples from pre numbered shipping documents.

Riaz Ahammed
by Riaz Ahammed , Financial Accountant , UTC Climate Controls & Security

Even though all the audit procedures are practical methods to audit Sales & Accounts Receivables, the audit procedure that would best uncover the understatement of the same is:

A. Test a sample of sales transactions, selecting the sample from pre numbered shipping documents (also known as tracing).

 

Mark Angelo Damuag
by Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

A. Test a sample of sales transactions, selecting the sample from pre numbered shipping documents. That's called tracing.

Mohammed Shahid Ullah
by Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

Auditors will test a sample of sales transactions, selecting the sample from sales invoices recorded in the sales journal to find the understatement of Sales & Accounts Receivable.

Syed Mehboob Ahmed Ahmed
by Syed Mehboob Ahmed Ahmed , Senior Technical Support Specialist – TOC / Field Engineer , Kaynes Technology India Ltd – Maintech Project

D. Review the aged receivable trial balance.

kamran Khan
by kamran Khan , Accountant , Concord Medical Equipment Trading LLC

B. Test a sample of sales transactions, selecting the sample from sales invoices recorded in the sales journal.

Yasir Aziz Gatta
by Yasir Aziz Gatta , Manager Finance , Misha Fashions Private Limited

C. Confirm accounts receivable.

Anas  Dawah
by Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

C..................Confirm accounts receivable.

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Confirmation sample receivables to prove the sales that have not been collected after health. The answer correct answer is B.

asber shaabo
by asber shaabo , ادارة -محاسبة - متابعة شؤون الفندق لدى القطاع العام و الخاص , فندق عينكاوة باﻻص - فندق ارابيﻻ غراند -نقابة محامي كردستان العراق

For business, accounting, marketing and sales failures

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