The following is a summary of the sales process carried out by XYZ CO. Division cattle
Question:
The following is a summary of the sales process carried out by XYZ CO. – Division cattle fodder.
1. The buyer sends a PURCHASE ORDER/PO containing the type of fodder, quantity and the desired quality and the date of the order must be available.
2. In general, all sales are warehouse locomotives (free on board shipping point) XYZ CO.
3. The PO is received by the sales department, and it is investigated whether the prospective buyer is regular customers who have obtained credit facilities. then the PO is checked to the warehouse and the factory, if all meet the requirements, the PO must be submitted sales manager authorization, just executed the sale
4. The Warehouse Head orders his staff to provide goods according to the PO, and When the buyer picks up the item, PROOF OF THE ITEM IS issued is issued signed by the head of the warehouse and the buyer who took the goods
5. Based on the PO and EVIDENCE OF ISSUANCE OF GOODS, the Sales Department issues INVOICE sent to the buyer as proof of sale as well as a bill of lading goods that have been sent.
6. At the end of each month the bill that has not been paid by the buyer is calculated, based on Unpaid INVOICE
7. As of June 30, 2020, the balance of Accounts Receivable is the amount of INVOICE that has not been received in full from the buyer on June 30, 2020.
Question:
a. Are the PO, PROOF OF EXPENDITURE OF GOODS and INVOICE proof of the transaction sales of XYZ CO. or audit evidence for auditors?
b. Choose the method of obtaining audit evidence in ISA 500, which you will use to check sales and receivables balance of XYZ CO. and audit evidence what will you get.
Expert Answer:
ANS WER a The PO PR OO F OF THE IT EM IS SU ED and IN VO ICE are all proof of the sales transaction ... View the full answer
