[shanek327]

Which of the following tests of controls most likely would help assure an auditor that goods shipped are properly billed?

a.

Examine shipping documents for matching sales invoices.

b.

Inspect unused sales invoices for consecutive prenumbering.

c.

Scan the sales journal for sequential and unusual entries.

d.

Compare the accounts receivable ledger to daily sales summaries.

FAR - 75
AUD - 78
BEC - 82
REG - 77

2 Corinthians 5:21

Our value does not come from our skills and abilities, as good as they may be; it does not come from our GPA, our job, a promotion from that job to a better job, our success on the CPA exam, or anything of the like; but our value comes from the fact that we have a Creator who loves us, cares for us, and desires to help us navigate the rough waters of this life in a way that provides security, hope, and true, everlasting joy while we anticipate the life to come, with Him.

[TiredGACandidate]

Control tests can typically be summed up to yes or no answers. Such as, are the employee time cards properly approved or are the shipments properly billed. If I asked you if this shipment was properly invoiced, you'd either answer yes or no. Therefore this is a test of controls rather than substantive tests.

BEC - 76
REG - 82
FAR - 55, 84
AUD - 72,67, 88
Done!!

[Anonymous]

A substantive proc is designed to detect material mistatements at the assertion level. Testing a control is seeing if it's effective to detect or prevent the material misstatements at the assertion level. When you examine the shipping doc to see if there is a matching sales invoice you can say that you want to see if there are controls in place that prevent shipp of items without being billed.

You can perfom at interim date the testing of controls and at the same time the substantive proc under certain conditions and there you could trace the shipp doc all the way to the JE to see if it is misstated.

[Anonymous]

I know it can be confusing, right know I am trying to nail down the sales cycle, got some questions about it in the AUD group today and they got me a little frustrated. But for more info about substantive procedure you can google AU C 330, hope it helps.

[Author]

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