4 Question 3 Revenue and receivable The following are audit procedures for sales transactions: 1. Trace a sample of shipping documents to related duplicate (i.e. copy) invoices and the sales journal to make sure that the shipment was billed. 2. Examine a sample of duplicate (i.e. copy) sales invoices to determine whether each one has a shipping document attached. 3. Examine the sales journal for a sample of sales transactions to determine whether each one has a posting reference in the margin indicating that it has been automatically compared by the computer with the accounts receivable master file for customer name, date and amount. 4. Examine a sample of shipping documents to determine whether each one has a duplicate sale invoice number printed on the bottom left corner. 5. Trace a sample of debit entries in the accounts receivable master file to the sales journal to determine whether the date, customer, name and amounts are the same 6. Vouch a sample of duplicate sales invoices to related shipping documents filed in the shipping department to make sure that a shipment was made. Required: a) i) ldentify whether each of the seven audit procedures above is a test of control or substantive test of transactions. (6 marks) i) Identify the assertion being addressed by each audit procedure. (6 marks) The following are selected transaction-related audit objectives for sales transaction: 1. Recorded sales exist. 2. Existing sales are recorded 3. Sales transactions are correctly included in the accounts receivable master file (sub-ledger) and are correctly summerised. Required. b) i) For each of the three objectives above, identify one specific misstatement that could occur. (3 marks) li) Describe the difference between the purposes of objective 1 and 2 above