When comparing prices and terms on a sample of sales invoices with the authorized price list and terms of trade,the auditor is testing the ____________ assertion.
A) cutoff
B) authorization
C) occurrence
D) completeness

Question

Quizplus · Accepted Answer

The auditor is testing whether the prices and terms on the sales invoices are authorized, in accordance with the company's authorized price list and terms of trade. This relates to the authorization assertion, which ensures that all transactions are properly authorized and approved in line with company policies and procedures. The other assertions (cutoff, occurrence, and completeness) do not specifically relate to comparing prices and terms on sales invoices.

When Comparing Prices and Terms on a Sample of Sales