Question

If the objective of an auditor's test of details is to detect a possible understatement of sales, the auditor most likely would trace transactions from the

A. Sales invoices to the shipping documents
B. Cash receipts journal to the sales journal
C. Shipping documents to the sales invoices
D. Sales journal to the cash receipts journal

Answer 1

A. Sales invoices to the shipping documents

Step-by-step explanation:

• It's a systematic and periodic analysis of sales performance. The job of the sales audit is to examine the company's financial documents by the govt tax agency and to verify the proper amount of sales tax that is remitted to the authority.