To test whether sales have been recorded, the auditor should draw a sample from a file of__________?
Correct answer: B. sales invoices
- A. purchase orders
- B. sales invoices
- C. sales orders
- D. bill of loading
Explanation
A sample of sales invoices can be traced to the sales records and ledger to verify that invoiced sales have been recorded. Sales orders and purchase documents provide supporting evidence but are not the direct sales-entry population.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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