Which procedure would be of most assistance to an auditor discovering a large credit sale that has erroneously been recorded twice?
A)Footing the sales journal.
B)Confirming accounts receivable.
C)Tracing the total sales in the sales journal to the general ledger.
D)Observation of the physical inventory count at year-end.

Question

Quizplus · Accepted Answer

Confirming accounts receivable would reveal that the same customer has been credited twice for the same sale, indicating a potential error in recording transactions. Footing the sales journal or tracing the total sales in the sales journal to the general ledger may not detect the error as it is limited to identifying mathematical errors or omissions, and not duplications. Observation of the physical inventory count is also irrelevant in this scenario.

Which Procedure Would Be of Most Assistance to an Auditor