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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.
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).
A. Test a sample of sales transactions, selecting the sample from pre numbered shipping documents. That's called tracing.
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.
D. Review the aged receivable trial balance.
B. Test a sample of sales transactions, selecting the sample from sales invoices recorded in the sales journal.
C. Confirm accounts receivable.
Confirmation sample receivables to prove the sales that have not been collected after health. The answer correct answer is B.
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