Question
An internal auditor selects a sample of sales invoices and matches them with shipping documents. This procedure most directly addresses which of the following assertions?
An internal auditor selects a sample of sales invoices and matches them with shipping documents. This procedure most directly addresses which of the following assertions?
A. All shipments to customers are recorded as receivables.
B. All billed sales are for goods shipped to customers.
C. All recorded receivables represent goods shipped to customers.
D. All shipments to customers are billed.
An internal auditor is testing cash disbursement transactions. Internal control policies require every check request to be accompanied by an approved voucher (that is, a package of documents evidencing that a good or service has been received and invoiced by the vendor). The voucher approval is based on a three-way matching of a purchase order, receiving report, and vendor's invoice. To determine whether checks have proper support, the IA should begin her testing procedures by selecting items from the population of: A. Check copies B. Purchase orders C Receiving Reports D. Approved vouchers.
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