The overall objective in the audit of the sales and collection cycle is to evaluate whether the account balances affected by the cycle are fairly presented in accordance with Accounting standards.

Question

Quizplus · Accepted Answer

The objective of the audit of the sales and collection cycle is to provide reasonable assurance that the financial statements are free from material misstatement in accordance with accounting standards. This is achieved by evaluating the design and implementation of internal controls over the sales and collection cycle, testing the effectiveness of those controls, and substantively testing account balances affected by the cycle. The ultimate goal of this audit is to express an opinion on the fairness of the financial statements as a whole.

The Overall Objective in the Audit of the Sales and Collection