Completeness of revenues may be tested by the auditor through the selection of a sample of which of the following?
A)shipping documents and tracing them to the sales journal.
B)accounts receivable and tracing them to cash receipts.
C)recorded sales transactions and tracing them to the general ledger.
D)inventory records and tracing them to the shipping documents.

Question

Quizplus · Accepted Answer

By selecting a sample of shipping documents and tracing them to the sales journal, the auditor can ensure that all sales transactions have been recorded in the sales journal, thereby testing the completeness of revenues. Option B tests the accuracy of recording revenue, while option C tests the posting of sales transactions to the general ledger. Option D tests the existence of inventory, not the completeness of revenues.

Completeness of Revenues May Be Tested by the Auditor Through