Which of the following is a test of controls for the control assertion of completeness for revenue?
A)Test a sample of sales invoices for authorised customer orders.
B)Review sales orders for proper credit approval.
C)Trace shipping documents to sales invoices and the sales journal.
D)Examine reconciliation of accounts receivable subsidiary ledger to general ledger control account.

Question

Quizplus · Accepted Answer

Tracing shipping documents to sales invoices and the sales journal is a test of controls for the completeness assertion for revenue. This test ensures that all sales that have been shipped have been properly recorded and included in the sales journal. Option A is a test of controls for the accuracy assertion, option B is a test of controls for the authorisation assertion, and option D is a substantive test of transactions.

Which of the Following Is a Test of Controls for the Control