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NEW QUESTION: 1
If the objective of a test of details is to detect overstatements of sales, the auditor should trace transactions
A. Accounting records to the source documents.
B. Sales journal to the cash receipts journal.
C. Source documents to the accounting records.
D. Cash receipts journal to the sales journal.
Choice "D" is correct. If the objective of a test of details is to detect overstatements of sales (existence
assertion), the auditor should trace transactions from the accounting records (i.e., sales journal) to the
source documents (e.g., customer order, sales order, shipping documents, etc.).
Choices "A" and "C" are incorrect. Tracing from the supporting documents to the accounting records gives
assurance as to the completeness assertion (all sales are properly included).
Choice "B" is incorrect. Tracing from the sales journal to the cash receipts journal only shows whether
cash has been received for the sale. Failure to find a related cash receipt may indicate simply that the sale
was made on account.
NEW QUESTION: 2
Which of the following software types BEST facilitates collaboration?
A. Video editing software
B. CAD software
C. Instant messaging software
D. Personal information manager
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