The auditor would like to design a test of control to test that shipping documents are issued in numerical order by the computer and are accounted for weekly.Which of the following typical tests of controls would be suitable?
A)Trace sales documents issued to the sales journal and trace the daily total to the general ledger.
B)Ask the shipping department about the process they use to issue shipping documents,paying particular attention to continuity of numerical sequence.
C)Use computer-assisted audit testing to determine whether there are any numbers missing in the sequence (gap detection).
D)Match shipments to the associated sales invoices.

Question

Quizplus · Accepted Answer

Using computer-assisted audit testing to detect any missing numbers in the sequence is a suitable test of control to verify that the shipping documents are issued in numerical order. This is called gap detection, and it ensures that no shipping documents are missing from the sequence. Option A involves tracing sales documents, which is not directly related to testing the control of issuing shipping documents in numerical order. Option B involves asking about the process used, but it does not provide direct evidence that the documents are issued in numerical order. Option D involves matching shipments to sales invoices, which is a test of transaction completeness, not a test of control.

The Auditor Would Like to Design a Test of Control