Which of the following documents is not relevant for vouching cash sales?
Correct answer: C. Monthly statements sent to customers
- A. Daily cash sales summary
- B. Salesmen's summary
- C. Monthly statements sent to customers
- D. Bank statementAccounting & Auditing
Explanation
Cash sales are settled immediately, so monthly statements sent to credit customers are not relevant evidence for vouching them. Daily summaries, salesmen's summaries and bank statements can help verify cash-sales collections.
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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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