[Adapted from Wiley CPA Review] Dana, an auditor for the audit firm C&C, recently finished up testing controls relating to management’s assertion concerning the completeness of sales transactions. In her audit work papers, Dana included the following:
“I inspected the entity’s reports of prenumbered shipping documents that have not been recorded in the sales journal”
“In the course of my testing, I have found 0 items that have been sold but have not recorded in the sales journal.”
“Since testing was performed without exception, I have determined that the controls to address the completeness of sales transactions are operating effectively.”
Which essential element of AS 3’s documentation requirements did Dana omit from her documentation?