Seb Lee and Boris Shonkoff are discussing the audit program for the revenue account. Seb and Boris
Question:
Seb Lee and Boris Shonkoff are discussing the audit program for the revenue account. Seb and Boris disagree about whether they should use procedure A or B below to test the occurrence assertion for the revenue account:
A. Select a sample of sales from the sales journal and agree the details in the journal to the sales invoices, delivery slips, and customer orders.
B. Select a sample of sales invoices, delivery slips, and customer orders and agree the details to the details recorded in the sales journal.
Required
Which test provides evidence about the occurrence assertion? Why? Which assertion does the other test provide evidence about?
Step by Step Answer:
Auditing A Practical Approach
ISBN: 978-1118849415
2nd Canadian edition
Authors: Fiona Campbell, Robyn Moroney, Jane Hamilton, Valerie Warren