Luke Green and Michael Rutherford are discussing the audit program for the revenue account. Luke and Michael
Question:
Luke Green and Michael Rutherford are discussing the audit program for the revenue account. Luke and Michael disagree about whether they should use procedure A or B below to test the occurrence assertion for the revenue account:
A. Select a sample of sales from the sales journal and agree the details in the journal to the sales invoices, delivery dockets and customer orders.
B. Select a sample of sales invoices, delivery dockets and customer orders and agree the details to the details recorded in the sales journal.
Required
Which test provides evidence about the occurrence assertion? Why? Which assertion does the other test provide evidence about?
Step by Step Answer:
In the context of auditing the occurrence assertion relates to whether the recorded transactions actually occurred meaning whether the revenue recorde...View the full answer
Auditing A Practical Approach
ISBN: 9780730382645
4th Edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
