An auditor would test controls related to the occurrence/existence of sales transactions by sampling recorded revenues and tracing them back to invoices and shipping documents

Question

Quizplus · Accepted Answer

This is correct. Testing controls related to the occurrence/existence of sales transactions involves sampling recorded revenues and tracing them back to invoices and shipping documents. This helps to ensure that sales transactions that are recorded actually occurred and that the company received payment for those transactions.

An Auditor Would Test Controls Related to the Occurrence/existence of Sales