When Analytical Procedures in the Sales and Collection Cycle Uncover
When analytical procedures in the sales and collection cycle uncover unusual fluctuations,the auditor should make additional inquiries of management.
A high inherent risk increases planned detection risk and decreases planned substantive tests.
The understatement of sales and accounts receivable is best uncovered by:
A) testing internal controls.
B) testing the aged accounts receivable trial balance.
C) substantive tests of transactions for shipments made but not recorded.
D) substantive tests of transactions for bad debts.
Tests of which balance-related audit objective are normally performed first in an audit of the sales and collection?
D) Detail tie-in