When sales invoices are automatically calculated and posted by a computer, the auditor may be able to reduce substantive tests of transactions for which, if any, assertion?
A)Accuracy
B)Existence
C)Completeness
D)None of the above

Question

Quizplus · Accepted Answer

When sales invoices are automatically calculated and posted by a computer, the risk of errors and inaccuracies in the calculation is reduced. Therefore, the auditor may be able to reduce substantive tests of transactions for the accuracy assertion since the computer system is likely accurately calculating and posting the invoices. However, the auditor would still need to consider other audit procedures for the completeness and existence assertions.

When Sales Invoices Are Automatically Calculated and Posted by a Computer