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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)
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)
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