You have been assigned to the audit team for a new internet start$-$up$,$ Red, an on$-$line distributor

of lip products.

The sales system has been designed to recognize sales revenue for retail sales when the order is

received on line and the credit card payment is approved. Sales returns are processed when the

refund is given to the customer, which sometimes can take months. Inventory is

reduced and cost of sales is recorded at the time the goods are shipped to the customer.

$1.$ Design a test of details audit procedure for existence of accounts receivable at year end.

$2.$ Design a test of details audit procedure for cut$-$off of sales

$3.$ Design a substantive analytical procedure for completeness, occurrence, and accuracy of

cost of goods sold.