Mylab Accounting With Pearson Etext -- Access Card -- For Auditing And Assurance Services (17th Edition)
17th Edition
ISBN: 9780135176115
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 14, Problem 23.1MCQ
To determine
Identify the purpose to trace the shipping document to the sales invoice.
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Students have asked these similar questions
An auditors would vouch copies of sales invoices to shipping documents in order to determine that:
A- Sales that are billed were also shipped
B-Customer shipments were billed
C-Shipments to customer were also recorded as receivables
D- The subsidiary accounts receivable ledger was updated
Confirmation of sales invoices directly with customers will normally provide evidence concerning the
a.
client ownership of the invoice amounts.
b.
occurrence of the sales transactions.
c.
completeness of receivables.
d.
collectibility of the invoices.
The Accounts Receivable subsidiary ledger is updated (increased and decreased) by using which of the following documents:
A. Billing of ladings and sales (billing) invoices
B. Sales orders and remittance advices
C. Sales (billing) invoices and sales orders
D. Sales (billing) invoices and remittance advices
Chapter 14 Solutions
Mylab Accounting With Pearson Etext -- Access Card -- For Auditing And Assurance Services (17th Edition)
Ch. 14 - Describe the following documents and records and...Ch. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - Prob. 4RQCh. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - Prob. 8RQCh. 14 - Prob. 9RQCh. 14 - Prob. 10RQ
Ch. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - Prob. 13RQCh. 14 - Prob. 14RQCh. 14 - Prob. 15RQCh. 14 - Prob. 16RQCh. 14 - Prob. 17RQCh. 14 - Prob. 18RQCh. 14 - Prob. 19RQCh. 14 - Prob. 20.1MCQCh. 14 - Prob. 20.2MCQCh. 14 - Prob. 20.3MCQCh. 14 - Prob. 21.1MCQCh. 14 - An auditor is performing substantive tests of...Ch. 14 - Prob. 22.3MCQCh. 14 - Prob. 23.1MCQCh. 14 - Prob. 23.2MCQCh. 14 - Prob. 23.3MCQCh. 14 - Prob. 24DQPCh. 14 - Prob. 25DQPCh. 14 - Prob. 26DQPCh. 14 - Prob. 27DQPCh. 14 - Prob. 28DQPCh. 14 - Prob. 29DQPCh. 14 - Prob. 30DQPCh. 14 - Prob. 31DQPCh. 14 - Prob. 32DQPCh. 14 - Prob. 33DQPCh. 14 - Prob. 34DQPCh. 14 - Prob. 37ICA
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Similar questions
- Tracing copies of computer-prepared sales invoices to copies of the corresponding computer-prepared shipping documents provides evidence that: A. Shipments to customers were properly billed. B. Entries in the accounts receivable subsidiary ledger were for sales actually shipped. C. Sales billed to customers were actually shipped. D. No duplicate shipments to customers were made.arrow_forwardWhat is the reason for ensuring that every copy of a vendor's invoice has a receiving report? O To ascertain that merchandise billed by the vendor was received by the company. O To ascertain that merchandise received by the company was billed by the vendor. O To ascertain that the invoice was correctly prepared. O To ascertain that a check was prepared for every invoice.arrow_forwardWhich of the following tests is directed towards the management assertion of completeness of sales? Question 19 options: 1) Checking mathematical accuracy of invoices. 2) Vouching sales recorded to invoices held. 3) Tracing delivery documents to invoices and sales recorded. 4) Vouching invoices to delivery documents. Next Pagearrow_forward
- In a sales transaction, which of the following is an assertion of existence or occurrence:a. All sales transactions that occur are recordedb. Sales transactions have been recorded at the correct periodc. The sales transaction has been recorded according to the amount that has been sent and the correct amount has been invoicedd. Sales transactions that have been recorded are valid sales to customersarrow_forwardWhich function should the billing department NOT perform? a. record the sales in the sales journal b. send the ledger copy of the sales order to accounts receivable c. send the stock release document and the shipping notice to the billing department as proof of shipment d. send the stock release document to inventory controlarrow_forwardWhy do companies use sequential prenumbering for documents such as checks, sales invoices, and purchase orders?arrow_forward
- 1. What would a credit manager do if a sales order received caused a customer to exceed its credit limit? 2. What happens after the shipping department verifies that the quantities and descriptions of goods prepared for shipment are consistent with the sales order?arrow_forward1. Why should the function of requisitioning the purchase of goods be segregated from the function of issuing purchase orders? 2. Explain how an automated matching process works regarding the payment of accounts payable 3. What control objective is addressed by having prenumbered receiving documentsarrow_forwardWhich statement about Revenue Cycle is correct? The customer and accounts payable department gets copies of the invoice.The sales order department prepares the invoice.The billing department uses the sales order and shipping documents to create the invoice.The accounts receivable department uses the sales order to update the accounts receivable subsidiary ledgerarrow_forward
- The entry to record the granting of credit to a customer for a sales return is posted to the accounts receivable subsidiary ledger only. the general ledger only. both the accounts receivable subsidiary ledger and the general ledger. both the accounts payable subsidiary ledger and the general ledger.arrow_forwardTo test whether debits to accounts receivable represent valid transactions, the auditor should trace entries from the A. Accounts receivable ledger to sales documentation. B. Sales journal to the accounts receivable ledger. C. Accounts receivable ledger to the cash receipts journal. D. Cash receipts documentation to the accounts receivable ledger.arrow_forwardIdentify if the two statements are either true or false. 1. The bill of lading is a document prepared by the seller detailing the terms of delivery 2. The sales invoice is the evidence for credit sales and purchases.arrow_forward
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