To test for recorded sales for which there were no actual shipments,the auditor traces from the
A)bill of lading to the sales journal.
B)sales journal to the shipping documents.
C)sales journal to the accounts receivable subsidiary ledger.
D)bill of lading to the supporting customer order and sales order.

Question

Quizplus · Accepted Answer

To test for recorded sales for which there were no actual shipments, the auditor should trace from the sales journal to the shipping documents. This ensures that each recorded sale has a corresponding shipment, verifying the existence of the sales transaction.

To Test for Recorded Sales for Which There Were No