Page 67 - Auditinf Electronic System

after performing the control tests for each objective, the auditor design and
perform the substantive tests of sales transactions to determine whether any
monetary misstatements for that objective exist in the transaction.

1- Occurrence: do recorded Sales Occurred.
➢ Auditor uses Vouching (Moving Backward) to detect 3 types of possible

potential misstatements (Overstatements)
o Sales included in the journals for which no shipment was made. (recorded not

shipped)
o Sales recorded more than once (Duplication).
o Shipments made to nonexistent customers and recorded as sales (shipped to

fictious customers)
➢ In General, for testing the occurrence of sales transaction, the auditor should

trace the recorded sales in the sales journal to sales invoice and shipping
documents and sales order and customer order. Also tracing values in subsidiary
AR ledger to the documents related to these customers. (ex: Tracing backward)

2- Completeness: Are all existing sales transactions already recorded?
➢ Auditors can trace selected shipping documents from a file in the

shipping department to related sales invoices and the sales journal. (ex: Tracing
forward) to detect potential misstatements that actual transactions were not
recorded (Understatements)

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬