The auditor selects a sample of recorded sales invoices and vouches them to shipping documents. This procedure is related to which of the following assertions?
A)Occurrence.
B)Completeness.
C)Accuracy.
D)Cutoff.

Question

Quizplus · Accepted Answer

The auditor is testing whether the recorded sales actually occurred, which relates to the occurrence assertion. Vouching involves tracing transactions from the recorded amount to the original source documents, such as shipping documents. This test verifies that the sale actually took place and was properly recorded. Completeness tests ensure that no sales were missed, accuracy tests ensure consistent accounting, and cutoff tests ensure that sales are recorded in the appropriate period.

The Auditor Selects a Sample of Recorded Sales Invoices and Vouches