When testing the existence objective for sales, the direction of tests should be from the journals back to supporting documents.

Question

Quizplus · Accepted Answer

This is because journals are the primary source documents recorded at the time of the transaction, which are then used to support entries made in the general ledger and financial statements. Therefore, it is important to ensure that the sales recorded in the journals are supported by the relevant documentation, such as invoices, sales orders, and receipts.

When Testing the Existence Objective for Sales, the Direction of Tests