Michael and Jackson are university students who work for you during their vacations. They have limited auditing experience. You have assigned them to the audit of Wishy Washy (Pty) Ltd, a distributor of washing machines. You wish them to carry out the detailed transactions audit work on credit sales, and are about to explain to them how to conduct this aspect of the audit.

YOU ARE REQUIRED TO:

Explain the following to the two students with regard to the audit of credit sales:

1. The audit objectives relevant to credit sales

2. The risk considerations for each objective

3. The assertion/s that would relate to each audit objective. Set out your answer as follows:

Audit objective Risk considerations Assertions

________ __________ ________