26. If confirmation of receivables cannot be done, acceptable alternative procedures would include:

a. Inspecting shipping documents prepared after the end of the year under audit.

b. examining cash collections before the end of the year under audit

c. Both a and b

d. none of the above

27. Tracing copies of sales invoices to bills of lading will provide assurance that all

a. Shipments to customers were recorded as receivables

b. shipments to customers were billed

c. Debits to the subsidiary receivable ledger are for sales that were shipped

d. Billed sales were shipped

28. In a subsequent to the acquisition of real property, the decision to capitalize an expenditure related to the property should be based on whether the expenditure:

a. only significantly increases the value of the property

b. only significantly extends the life of the property

c. significantly increases the value of the property and/or significantly extends the life of the property

29. In order to determine whether internal control operated effectively to minimize errors of failure to invoice a shipment, the auditor would select from a sample of transactions from the population represented by the

a. customer order file

b. bill of lading file

c. subsidiary ledger

d. sales invoice file

30. In order to determine whether internal control operated effectively to minimize errors of failure to post invoices to customer accounts receivable ledger accounts, the auditor would select from a sample of transactions from the population represented by the

a. receiving report file

b. customer order file

c. bill of lading file

d. sales invoice file

31. In order to gather evidence concerning proper credit approval of sales, the auditor would select a sample of transactions from the population represented by the

a. sales invoice file

b. subsidiary ledger file

c. customer order file

d. bill of lading