Question 3 - Revenue and receivable The following are audit procedures for sales transactions: 1. Trace a sample of shipping documents to related duplicate (.e. copy) Involoes and the sales journal to make sure that the shipment was billed. 2 Examine a sample of duplicate fi.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 involces to related shipping documents filed in the shipping department to make sure that a shipment was made. Required: a) Identify whether each of the seven audit procedures above is a test of control or substantive test of transactions. (6 marks) a) 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: D) For each of the three objectives above, Identity one specific misstatement that could occur. (3 marks) Describe the difference between the purposes of objective 1 and 2 above