The following are selected transaction-related audit objectives and audit procedures for sales transactions:
Transaction-Related Audit Objectives
1. Recorded sales exist.
2. Existing sales are recorded.
3. Sales transactions are correctly included in the accounts receivable master file and are correctly summarized.
Procedures
1. Trace a sample of shipping documents to related duplicate sales invoices and the sales journal to make sure that the shipment was billed.
2. Examine a sample of duplicate 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 sales 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 amount 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. For each objective, identify at least one specific misstatement that could occur.
b. Describe the differences between the purposes of the first and second objectives.
c. For each audit procedure, identify it as a test of control or substantive test of trans actions. (There are three of each.)
d. For each objective, identify one test of control and one substantive test of transactions.
e. For each test of control, state the internal control that is being tested. Also, identify or describe a misstatement that the client is trying to prevent by use of the control.