Page 68 - Auditinf Electronic System

➢ To conduct a meaningful test using this procedure, the auditor must be
confident that all shipping documents are included in the file. This can be done
by accounting for a numerical sequence of the documents Also By examining
the movement of inventory and tracing them to the sales invoices, he can discover
any unrecorded sales.

3- Accuracy: Are Sales Accurately Recorded?
➢ Auditor depends on recalculations and comparison of information

on different documents, many tests can be performed here like:
▪ Compare prices on sales invoices with an approved price list.
▪ Recalculate subtotals and totals.
▪ Compare the details on the invoices with shipping records for description,

quantity, and customer identification.
▪ Trace the invoices values to the journal and ledger.
▪ Examine customer orders and sales orders for the same information.

➢ When sales invoices are automatically calculated and posted by a computer, the
auditor may be able to reduce substantive tests of transactions for the accuracy
objective. In this case, the auditor focuses on determining that effective
computer controls exist

4- Classification: Are Recorded Sales Correctly Classified?

➢ Auditors must be concerned that transactions are charged to the correct general
ledger account. The correct classification of sales requires:

▪ Correct classification of sales in cash and on credit sales.

▪ Correct classification of sales in cash and collecting a debit balance of AR.

▪ Clear classification of sales of assets and sales of goods.

5- Timing: Are Sales Recorded on the Correct Dates?

➢ The auditor should compare the date on selected shipping documents with the
date on related sales invoices, the sales journal, and the accounts receivable
master file.

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