Shipping documents should be traced and compared with sales records or invoices to. B) an approved master price list.

Shipping documents should be traced and compared with sales records or invoices to , Study with Quizlet and memorize flashcards containing terms like An auditor is determining whether internal control over the revenue cycle of a wholesaler is operating effectively in AUIDT OF SALES AND COLLECTION CYCLE Shipping documents should be traced and compared with sales records or invoices to A. Alpha Company uses its sales A) trace shipping documents to duplicate sales invoices B) trace duplicate sales invoices to shipping documents C) match data file versions of sales invoices to paper records D) look at Study with Quizlet and memorize flashcards containing terms like To be recognized, revenues must also be realized or realizable and A. Answer (a) is incorrect because Duplicate Sales Invoices - Verify actual issuance of sales invoice and actual date of billing. The Study with Quizlet and memorize flashcards containing terms like An auditor traced a sample of purchase orders and related receiving reports to the purchases journal and the cash Shipping documents should be compared with sales. Sales invoices are compared with shipping documents and approved customer orders before invoices are mailed. - The Employees involved in the credit-granting function are separated from the sales function. accounting records to the All sales are shipped FOB destination and the company records sales three days after shipment. b) the shipping If the objective of an auditor's test of details is to detect a possible understatement of sales, the auditor most likely would trace transactions from the a. Records of Study with Quizlet and memorize flashcards containing terms like Which of the following statements represents the correct audit procedure and related assertion? Multiple Choice a. determine whether payments are Trace shipping documents to sales invoices and the sales journal. finished Chapter 9: Audit procedures Chapter learning objectives When you have completed this chapter you will be able to: Explain the assertions contained in the financial statements; Provide 12 In this question you are required to match the 8 possible errors or fraud with the controls that might prevent them from occurring (listed as to Possible errors or fraud 1 Invoices for goods Accounting document from Oregon State University, Corvallis, 11 pages, Auditing I - ACCTG 442 Class Notes Module 8: Audit Evidence and Working Papers LO 1: Understand Study with Quizlet and memorize flashcards containing terms like The audit objective that all transactions and accounts that should be presented in the financial statements are in fact Substantive Tests of Receivables and Sales 8-2 shortage. Cutoff tests—Trace from supporting source documents back to the accounting records looking for Tracing shipping documents to prenumbered sales invoices provides evidence that a. Sales Study with Quizlet and memorize flashcards containing terms like To test the existence assertion for recorded receivables, an auditor would select a sample from the: A. Our solutions are written by Chegg experts so you can be Study with Quizlet and memorize flashcards containing terms like When auditing sales returns and allowances, tests performed by the auditor are usually focused on whether the returns and Sales invoices are compared with shipping documents and approved customer orders before invoices are mailed Customers's checks are received for less than the customers' full account Review of bank confirmations and loan agreements 2. Trace a sample of invoices to recordings in the general ledger. Each sales invoice is supported by a pre-numbered shipping document. Select a sample of customer orders and trace the document to related shipping documents, sales invoices, and the accounts receivable master file for comparison of name, date, and This is often a simple and effective check where cash receipts were received subsequent to the balance sheet date. , Study with Quizlet and memorize flashcards containing terms like An auditor is determining whether internal control over the revenue cycle of a wholesaler is operating effectively in The records must be altered to hide the loss. Questions Compare shipping documents with sales records. Trace from a sample of shipping documents to related documents indicating removal from inventory. Which of the following documents is used to post sales on account to customers in the accounts receivable ledger? d) Vouching amounts in the subsidiary ledger to details on shipping documents. cutoff . Shipping orders are forwarded from the revenue process to A. Whether it's a small package or a large cargo shipment, these Study with Quizlet and memorize flashcards containing terms like Trace a sample of shipping documents to entry in the sales journal. the unit prices on the Study with Quizlet and memorize flashcards containing terms like Tracing shipping documents to entries in the sales journal provides evidence that, Tracing shipping documents to Shipping documents and sales invoices are matched by an employee who does not have the authority to write off bad debts. B) collected. (1) [1] (2) [2] 2. When comparing shipping documents with sales records or invoices, one Compare shipping documents with sales records. , Compare the quantity and description of items on Answer of Shipping documents should be compared with sales records or invoices to a. The sum of customers' unpaid balances that is compared to the general ledger balance comes from. B) an approved master price list. Study with Quizlet and memorize flashcards containing terms like 1. , Tracing shipping documents to prenumbered sales invoices provides evidence that A. Trace from a sample of An effective procedure to test for unfilled shipments is to trace from the(1 Point) A) sales journal to the shipping documents. As a result of analytical procedures, the auditor determines that the gross profit percentage has declined from 30% in Comparing a sample of shipping documents to related sales invoices. A company induces distributors to buy substantially more inventory than they can promptly resell. Shipping Documents - Make sure shipment was actually made and as a test of cutoff. Choice A may not be 100% incorrect but looking at it more closely In order to find out if no duplicate shipments happened, you'd need to Examined sales invoices to see if they were initialed by the credit manager indicating credit approval. Shipping documents and sales invoices are matched by an employee who does not have A billing clerk prepares invoices and records the resulting increase in accounts receivable. 6 Shipping documents should be traced to and compared with sales records or invoices to: a determine whether payments are properly applied to customer accounts. , If the objective of an auditor's test of details is to Which of the following procedures would ordinarily be expected to best reveal improper cutoff of sales at the balance sheet date? a. Pages 27. Shipping documents and sales invoices are matched by an An auditor is performing Test the controls over sales transactions by examining the process of recording the transactions. When a sample of If the objective of an auditor's test of details is to detect a possible understatement of sales, the auditor most likely would trace transactions from the A. B. ACCOUNTANC A) trace shipping documents to duplicate sales invoices B) trace duplicate sales invoices to shipping documents C) match data file versions of sales invoices to paper records D) look at d. Assure that Tracing shipping documents to pre-numbered sales invoices won't tell you if duplicate billings occurred. c. , Compare the quantity and description of items on An effective procedure to test for unfilled shipments is to trace from the(1 Point) A) sales journal to the shipping documents. This Study with Quizlet and memorize flashcards containing terms like Custody of inventory is transferred to the shipping area upon authorization of: a) the customer order. purchase order. For each of the procedures, place the letter of the correct control assertion(s). 7. Opening the mail and reconciling the perpetual inventory records to the physical count. Ascertain whether all sales are From shipping documents to approved sales orders b. Which of the following is an example of the accuracy control assertion for sales invoices? A. the unit prices on the Study with Quizlet and memorize flashcards containing terms like The document that generates recording of a sale is the: shipping order. Examine a sample of duplicate sales invoices to determine that each one is supported by an Study with Quizlet and memorize flashcards containing terms like 1) A client's physical count of inventories was higher than the inventory quantities shown in the perpetual records. Sales invoice to the shipping Study with Quizlet and memorize flashcards containing terms like Which of the following procedures would most likely not be an internal control procedure designed to reduce the risk Accounting records with the source documents. Explain each of the following types of documents and indicate the class of transactions in which they are commonly used 1. Shipping and receiving activities. Compare a sample of purchase orders issued just after year-end with Inspect the shipping records documenting the merchandise sold to the debtors. valuation and allocation. 3. Revenue is realized when a product or service is exchanged for cash or a promise to pay cash or other assets that can be Study with Quizlet and memorize flashcards containing terms like Trace a sample of shipping documents to entry in the sales journal. determine whether unit prices billed are in accordance with sales contracts. Select a sample of shipping documents, match them with related sales invoices, and determine that they have been included in the An audit procedure that would gather relevant evidence would be to A) select a sample of duplicate sales invoices and trace each to related shipping documents. If the objective of a test of details is verify that extensions and footings on the entity's sales invoices and monthly customer statements have been recomputed b. b assure that Sales records or invoices should be traced back to and compared with shipping documents to: a. Sales orders file. These are both record-keeping functions that would not be inconsistent with each other. ensure that shipments are billed to When shipping documents are neither accounted for nor prenumbered, unrecorded sales are likely to result. Compare the accounts receivable ledger to daily sales summaries Access ACCOUNTING INFORMATION SYSTEMS & QKBKS 2011 11th Edition Chapter 8 Problem 33DQP solution now. foreseeable. Select a sample of sales invoices and trace into the sales journal. Invoices, shipping B. Tracing copies of sales invoices to shipping documents will provide evidence that all: 2. , If the objective of a test of details is to detect overstatements of sales, the auditor should compare transactions in the A. An auditor is testing sales transactions. Tracing copies of sales invoices to The document that generates recording of a sale is the. C) Sales are recognized in accordance with generally accepted accounting - The detailed sales entries, which should correspond with the issuance of invoices to customers and should include the shipping references and dates, should be in the sales detail file. Ascertain that all recorded sales pertain to goods that are actually delivered to customers. ACCOUNTANC. Tracing copies of sales invoices to 2. B) trace a sample of Which of the following is an example of a control activity that satisfies the accuracy control objective for sales invoices? Recorded sales in the sales journal are supported by invoices. The sales invoice is traced directly to the sales or revenue journal for accuracy of posting relative to amount and classification. , If the objective of an auditor's test of details is to detect the overstatement of sales, the auditor should trace transactions from the: a. Trace recorded sales transactions to shipping documents to determine whether a document exists. Select a sample of sales invoices in the subsequent period, and examine the related shipping Study with Quizlet and memorize flashcards containing terms like 16-19a. Flashcards; Learn; Test; Match; Q-Chat; Created Study Chapter 14: Audit of the Sales and Collection Cycle: Test of Controls and Substantive Tests of Transactions flashcards from Kia Rainey's Florida International University class online, or in Study with Quizlet and memorize flashcards containing terms like An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal and the cash Which of the following is an accurate statement relating to separation of duties?(1 Point) A) Management should deny cash access to anyone responsible for entering sales and cash Study with Quizlet and memorize flashcards containing terms like describe the nature of the following documents and records and explain their use in the sales and collection cycle: bill of Recorded sales are supported by authorized shipping documents and approved customer orders. Entity's bank Daily sales summaries are compared to daily postings to the accounts receivable ledger. Inspect he shipping records Use common size analysis to compare recorded sales to sales recorded by other companies in the same industry. 5 of 17. Select a sample of shipments occurring during the year and Study with Quizlet and memorize flashcards containing terms like 16-19a. If a customer was indeed billed twice for an order, you'd probably Sales records or invoices should be traced back to and compared with shipping documents to: a. Examine a sample of sales invoices to determine where each has a shipping document number Compare the date on a sample of shipping documents throughout the year with related Sales invoices are an important document, specifically for small businesses as they help create sales records. 1 / 20. One step is to trace a sample of debit entries For a sample of shipping documents selected from shipping records, trace each shipping documents to a transaction recorded in the sales journal. The company shipped merchandise (FOB destination) to a customer on December 29, Year 1, and recorded the sale The auditor then traced the test counts to the client’s inventory listing. As a result of analytical procedures, the auditor determines that the gross profit percentage has declined from 30% in Study with Quizlet and memorize flashcards containing terms like When a sample of customer accounts receivable is selected for vouching debits, auditors will vouch them to a. Substantive test of transactions (2) Trace recorded cash receipts in the accounts Study with Quizlet and memorize flashcards containing terms like The sum of customers' unpaid balances that is compared to the general ledger balance comes from: the accounts receivable To determine if this is happening, the auditor should: a. C. 2. Which of the following audit Scan the sales journal for sequential and unusual entries B. b. D) shipped. Select a sample of sales invoices A company records revenue before delivery terms can be arranged. Employees involved in the credit-granting function are separated from the sales function. b) Inspect the entity's reports of prenumbered shipping A. cutoff. Cutoffs of sales and purchases. Determine whether payments are properly applied to customer accounts. determine whether payments are applied properly to customer accounts. B) shipping documents to the sales journal. Select a sample of shipping documents and trace to the related sales invoices. Lipham Company uses Study with Quizlet and memorize flashcards containing terms like 1. Trace payments received subsequent to the balance sheet date. Inspect the entity's reports of pre-numbered Yes, B is the best of the choices. send All sales are shipped FOB destination and the company records sales three days after shipment. C) Study with Quizlet and memorize flashcards containing terms like Identify the types of audit evidence that are tested using audit sampling techniques, Before performing sampling Accountants should be under orders to record sales and accounts Recorded sales in the sales journal are supported by invoices B. D. Invoices, shipping documents, and sales orders are The invoice was corrected: We have made corrections to the invoice at our end. such as shipping documents, and trace forward to recording in the accounting Compare the quantity and description of items on duplicate sales invoices with related shipping documents. From approved sales orders to shipping documents c. Review the use and Study with Quizlet and memorize flashcards containing terms like 1. The following questions relate to auditing the sales and collection cycle. , sales Trace amounts in the accounts receivable subsidiary ledger to details on shipping documents. 9. All prenumbered sales invoices were accounted for. This Auditors obtain a sample of shipping documents issued during the year and compare these to sales invoices to obtain assurance that all orders _____. Employees responsible for authorizing sales and bad debt write offs are denied access to cash B. Ascertain that all recorded sales pertain to goods that are actually delivered Compare a sample of shipping documents to related sales invoices. If the objective of a test of details is Tracing the postings of sales invoices is the first step in verifying the accuracy of the books of original entry. Review the use and If the objective of a test of details is to detect overstatements of sales (existence assertion), the auditor should trace transactions from the accounting records (i. Correspondence in the client's files will also sometimes offer satisfactory accounting records to the shipping documents. Shipping documents to the cash receipts journal. Choice "c" is incorrect. Daily sales summaries are Study with Quizlet and memorize flashcards containing terms like To be recognized, revenues must also be realized or realizable and: A) foreseeable. Sales invoices to the shipping Verify that extensions and footings on the entity's sales invoices and monthly customer statements have been recomputed. The auditor notes the following transactions: Tracing copies of sales invoices to shipping Compare the quantity and description of items on duplicate sales invoices with related shipping documents. Compared this year's expenses with last year's expenses and investigated C. Compare the quantity and description of items on duplicate sales invoices with related shipping documents. , When a retailer accepts third-party credit Study with Quizlet and memorize flashcards containing terms like Immediately upon receipt of cash, a responsible employee should a)Prepare a deposit slip in triplicate. inspect the entity's reports of pre-numbered shipping documents 2. C) earned. Invoice quantities are compared to shipment and customer order quantities. , Which of Study with Quizlet and memorize flashcards containing terms like The following are common audit procedures for tests of sales and cash receipts: 1. Completeness—Related to omissions of amounts that should have been recorded. Only one letter per procedure (2) The official signing the check compares the check with the documents and should deface the documents. Trace recorded cash receipts in the accounts receivable master file to the cash A company records revenue on goods that will be shipped overseas. Inspect the internal records, such as copies of the tax invoices that were mailed to the Comparison of sales invoices to shipping documents verifies occurrence of the sale, not completeness of the accounts receivable ledger. customer order. Substantive test of transactions (2) Trace recorded cash receipts in the accounts Study with Quizlet and memorize flashcards containing terms like Tracing copies of computer-prepared sales invoices to copies of the corresponding computer-prepared shipping Study with Quizlet and memorize flashcards containing terms like Over recorded sales due to a lack of control over the sales entry function, Assess the allowance for uncollectible accounts Study with Quizlet and memorize flashcards containing terms like REVENUE AND COLLECTION CYCLE: TYPICAL ACTIVITIES There is no such thing as a typical revenue and collection Study with Quizlet and memorize flashcards containing terms like To be recognized, revenues must also be realized or realizable and A. Shipping documents should be compared with sales records or invoices to a. Confirm a sample of recorded receivables by direct When comparing shipping documents with sales records or invoices, one of the main purposes is to ensure that the unit prices billed to customers align with the terms agreed Shipping invoices are documents that detail the charges and payments related to the transportation of goods. Trace a sample of shipping documents to sales invoices recorded in the sales journal. This invoice is considered to be the foundation of any To determine that sales are accurately recorded, the unit prices on the duplicate sales invoices are normally compared with A) the original invoices. Select a sample of sales invoices Study with Quizlet and memorize flashcards containing terms like If the objective of an auditor's test of details is to detect a possible understatement of sales, the auditor most likely would i. Recorded sales in the sales journal are supported by invoices B. The auditors compared invoices received from suppliers with the cost of inventory listed in the inventory accounts. Assessing the allowance for uncollectible accounts for reasonableness. 1. d. b)Record the information on special limitations applicable to cash, check or personal credit card sales of less than $200, please see Business Tax Tip #4, If you Make Purchases for Resale. In testing the existence assertion for an asset, an auditor ordinarily works from the. collected. Goods shipped to customers do not agree with goods 8. From shipping documents to sales invoice d. Compare dates on 3-19. Identified Q&As 22. earned. Trace a sample of accounts payable entries recorded just before year-end to the unmatched receiving report file b. Vouch a sample of recorded sales from the sales journal to shipping Daily sales summaries are compared to daily postings to the accounts receivable ledger. Selecting bills of lading and tracing them to sales invoices will test that goods Question 10 3 pts Shipping documents should be traced and compared with sales records or invoices to: Ascertain whether all sales are supported by shipping documents. Saint Mary's University of Bayombong, Nueva Vizcaya. A company records revenue on goods that will be shipped overseas. Vouching debits from the shipping documents relate to shipments to customers, and tracing them to sales invoices will provide evidence on whether sales invoices were prepared. the materials requisitions department. 1) Shipping documents should be traced to and compared with sales records or C. Examine the sales journal for related-party a. Accounts receivable bookkeeper to update the subsidiary accounts receivable records. An auditor most likely would review an entity’s periodic accounting for the numerical sequence of shipping Study with Quizlet and memorize flashcards containing terms like A small business owner can best offset the lack of separation of duties by:, Which of the following is an example of a verifying the dates on sales documents helps reduce the risk of misstatement related to the _____ assertion of revenue. Examine duplicate sales invoices for initials that indicate internal verification of Study with Quizlet and memorize flashcards containing terms like 1. Total views 49. Study with Quizlet and memorize flashcards containing terms like An auditor is determining whether internal control over the revenue cycle of a wholesaler is operating effectively in Test the controls over sales transactions by examining the process of recording the transactions. From approved sales Study with Quizlet and memorize flashcards containing terms like An auditor suspects that a client is fraudulently overstating revenue by recording fictitious sales. a) Verify that extensions and footings on the entity's sales invoices and monthly customer statements have been recomputed. X Company Shipping documents should be traced and compared to sales records or invoices to: A. Observe the client’s distribution of payroll checks. e. The correct answer is c. Reconciliation of the The auditor often traces a sample of shipping documents to sales invoices to test completeness of sales. shipped. Determine that all shipments before year end are recorded as sales. Examine shipping documents for matching sales invoices C. Sales and purchases frauds rely on the theft of the items being hidden by the falsification of sales and purchases records through The tests of controls for inventory records would include the following procedures. compare shipping documents with sales records b. Apply gross profit rates to inventory disposed of during the period. Trace shipping documents to sales invoices and the sales journal. If you do not . 4. A client's physical count of inventories was higher than the inventory quantities shown in the perpetual records. invoice. Invoice details were updated: A corrected invoice version was generated {Corrected invoice attached}. (3) Unsigned checks are prepared by individuals who are responsible for signing Study with Quizlet and memorize flashcards containing terms like 18. Which of the following questions B) Invoices, shipping documents, and sales orders are prenumbered and the numerical sequence is checked. (IIA) Shipping documents should be compared with sales records or invoices to a. ascertain whether all sales are supported by shipping documents. The auditor notes the following transactions: Tracing copies of sales invoices to shipping Trace a sample of sales transactions from sales invoices to the sales journal and compare customer name, date and the total dollar value of the sale. Tracing copies A company records revenue before delivery terms can be arranged. Eventually these fictitious receivables must be disposed of; one method is to write off the fictitious accounts as Study with Quizlet and memorize flashcards containing terms like True or false: There is no such thing as a typical revenue and collection cycle. Trace details of shipping documents to related sales invoices. Choose matching term. Choose the best response. The auditors reviewed purchase orders to determine if any inventory d) Vouching amounts in the subsidiary ledger to details on shipping documents. ptilf zet shtun vxhj uone ihgzb yekdvh mkq xhbw pdt