The correct answer is d) Type of Audit Evidence: Recalculation; Transaction-Related Audit Objective: Accuracy.
Here's why:
Recalculation: This procedure involves recalculating the totals in the sales journal and comparing them to the recorded amounts in the general ledger. This helps ensure the accuracy of the recorded transactions and detects any potential errors in recording or summarizing the sales amounts.
Accuracy: The audit objective of accuracy focuses on verifying whether the recorded amounts are free from material errors and fairly represent the actual sales transactions. Recalculation directly addresses this objective by verifying the mathematical accuracy of the recorded sales.
Complete question:
Vouch entries in sales journal to sales invoices and related shipping documents. General Transaction-Related Audit Objectives Occurrence Posting and summarization Completeness Classification Accuracy Timing a. Identify the type of audit evidence used for each audit procedure. b. Identify the general transaction-related audit objective or objectives satisfied by each audit procedure.
Audit procedure:
Add the sales journal for the month of July and trace amounts to the general ledger.
a) Type of Audit Evidence: Analytical Procedures; Transaction-Related Audit Objective: Accuracy.
b) Type of Audit Evidence: Physical Examination; Transaction-Related Audit Objective: Completeness.
c) Type of Audit Evidence: Confirmation; Transaction-Related Audit Objective: Existence.
d) Type of Audit Evidence: Recalculation; Transaction-Related Audit Objective: Accuracy.