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An audit manager is attempting to audit a sample of revenue transactions for a major client. The auditor is concerned with ensuring that the selected
An audit manager is attempting to audit a sample of revenue transactions for a major client. The auditor is concerned with ensuring that the selected revenue transactions are not fictitious. Which of the following would be the most prudent method of achieving this? The auditor should select a sample of revenue transactions and then trace them to the corresponding accounts payable entries. The auditor should examine copies of sales orders and bills of lading, and attempt to trace to cash and accounts receivable entries, respectively. The auditor should begin by examining monthly accounts receivable statement balances and tracing to the customer master file to make sure the client's exist. None of these choices are correct
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