An audit program lists the procedure "select a sample of 20 entries in the sales journal and trace to duplicate sales invoices and related shipping documents" as a test of the completeness assertion for inventory.This procedure:
A)Provides low reliability evidence due to the small sample size.
B)Provides neither appropriate,nor sufficient audit evidence.
C)Provides relevant and reliable audit evidence.
D)Provides inappropriate audit evidence for assertion being audited.

Question

Quizplus · Accepted Answer

This procedure is more relevant to testing the occurrence assertion rather than completeness. Completeness would involve ensuring all transactions that should be recorded are recorded, not tracing recorded transactions to supporting documents.

An Audit Program Lists the Procedure "Select a Sample of 20