Final answer:
The auditor is gathering evidence to determine the accuracy of recorded sales in relation to goods shipped.
Step-by-step explanation:
The auditor is gathering evidence to determine whether the recorded sales for the correct amount of goods shipped are accurately billed and recorded. This relates to the transaction-related audit objective of accuracy. Accuracy refers to ensuring that the financial information is free from material misstatements and is recorded correctly.
The auditor will review the sales invoices, shipping documents, and other supporting evidence to verify that the recorded sales amount matches the actual goods shipped and that the billing is done accurately. This is important to ensure the financial statements are reliable and provide a true and fair view of the company's sales.
In addition to accuracy, the auditor may also consider other audit objectives such as existence (ensuring the recorded sales actually occurred), completeness (ensuring all sales transactions are recorded), and cut-off (ensuring sales are recorded in the correct accounting period).