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The following are audit procedures from different transaction cycles. For each, identify whether the test is a test of controls or a test of
The following are audit procedures from different transaction cycles. For each, identify whether the test is a test of controls or a test of transaction. a) Trace a sample of shipping documents to the entry in the sales journal. b) Examine a sample of warehouse removal slips for signature of authorized official. c) Examine duplicate copy of shipping documents for evidence that quantities were verified before shipping. d) Select a sample of payroll checks and agree hours to employee time records. e) Use audit software to foot and cross-foot the sales journal and trace the balance to the general ledger. f) Examine voucher packages and related vendor invoices for evidence of approval of account classification. g) Select a sample of sales invoices and agree prices to the approved price list. h) Select a sample of entries in the cash receipts journal and trace to posting in individual customer accounts receivable records. i) Review a sample of shipping documents to determine if each has been approved by the inventory manager. j) Determine the number of units added to the inventory account agree with the units reported on the receiving reports.
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