1. 14-30 (Objectives 14-3, 14-5) The following are common audit procedures for tests of sales and cash receipts:

   1. Examine the sales journal for related-party transactions, notes receivable, and other unusual items.

   2. 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 amount.

   3. Examine sales invoices for an indication that unit selling prices were compared to the approved price list.

   4. Examine sales invoices to determine whether the account classification for sales has been included in the electronic record.

   5. Compare the quantity and description of items on sales invoices with related shipping documents.

   6. Perform a proof of cash receipts.

   7. Examine financial statement footnotes for appropriate disclosure of sales to related parties.

   8. Examine a sample of remittance advices for approval of cash discounts.

   9. Trace recorded cash receipts in the accounts receivable master file to the cash receipts journal and compare the customer name, date, and amount of each one.

   Required

   1. Identify whether each audit procedure is a test of control or a substantive test of transactions.

   2. State which transaction-related audit objective(s) each of the audit procedures fulfills.

   3. For each test of control in part a., state a substantive test that could be used to determine whether there was a monetary misstatement.