Ch $5$: Example $-$Auditing

$1)$ Below are five audit procedures, all of which are tests of transactions associated with the audit of the sales and collection cycle. Also, below are the six general transaction$-$related audit objectives and the five management assertions. For each audit procedure, indicate $(1)$ its audit objective, and $(2)$ the management assertion being tested.

Audit Objectives

A$.$ occurrence

B$.$ completeness

C$.$ accuracy

D$.$ posting and summarization

E$.$ classification

F$.$ timing Assertions

V$.$ occurrence

W$.$ completeness

X$.$ accuracy

Y$.$ classification

Z$.$ cutoff

$1.$ Vouch recorded sales from the sales journal to the file of bills of lading.

$(1)\_\_\_\_\_\_\_\_$

$(2)\_\_\_\_\_\_\_\_$

$2.$ Compare dates on the bill of lading, sales invoices, and sales journal to test for delays in recording sales transactions.

$(1)\_\_\_\_\_\_\_\_$

$(2)\_\_\_\_\_\_\_\_$

$3.$ Account for the sequence of prenumbered bills of lading and sales invoices.

$(1)\_\_\_\_\_\_\_\_$

$(2)\_\_\_\_\_\_\_\_$

$4.$ Trace from a sample of prelisting of cash receipts to the cash receipts journal, testing for names, amounts, and dates.

$(1)\_\_\_\_\_\_\_\_$

$(2)\_\_\_\_\_\_\_\_$

$5.$ Examine customer order forms for credit approval by the credit manager.

$(1)\_\_\_\_\_\_\_\_$

$(2)\_\_\_\_\_\_\_\_$

$6.$ Foot the purchases journal and trace the totals to the related general ledger accounts.

$(1)\_\_\_\_\_\_\_\_$

$(2)\_\_\_\_\_\_\_\_$

$7.$ Recompute the cash discounts taken by the client.

$(1)\_\_\_\_\_\_\_\_$

$(2)\_\_\_\_\_\_\_\_$

$8.$ Compare dates on cancelled checks with the bank cancellation date.

$(1)\_\_\_\_\_\_\_\_$

$(2)\_\_\_\_\_\_\_\_$

$9.$ Trace from a sample of cancelled checks to the cash disbursements journal.

$(1)\_\_\_\_\_\_\_\_$

$(2)\_\_\_\_\_\_\_\_$

$10.$ Examine supporting documentation for a sample of transactions for authorized payee and amount and to determine services or goods were received.

$(1)\_\_\_\_\_\_\_\_$

$(2)\_\_\_\_\_\_\_\_$