What are the issues related to documentation in an audit context. 1.Choose recorded sales invoices and trace
Question:
What are the issues related to documentation in an audit context.
1.Choose recorded sales invoices and trace the corresponding shipping documents to verify the existence of goods shipped.
2.To test of overall reasonableness of the balance of cost of goods sold, ,calculate the ratio of cost of goods sold to sales.
3.For you to examine the client's January bank statement attached wiyh cancelled checks returned as support of outstanding checks listed on the client's December year - end bank statement. .
4. A sales transaction from the origination of an incoming sales order to the shipment of merchandise to an invoice and to the proper recording in the sales journal has to be traced.
5.Perform an inspection independently count a sample of the client's marketable securities held in a safe deposit box.
6. The accuracy of the sales invoice by multiplying the number of items shipped by the authorized price list to determine extended cost has to be tested.
7.Touring he plant to determine that a major equipment acquisition was received and is in working condition.
8. Examine board of director's minutes for the approval of a major bond issued during the year.
