Evidence and Assertions Below are audit procedures – five th…
Evidence and Assertions Below are audit procedures – five that are associated with the sales cycle and five that are associated with the purchases cycle. For each procedure, identify: The management assertion that is being tested The type of evidence gathered. Procedure Evidence Assertion Trace the monthly total recorded in the purchases journal to the general ledger to ensure all purchases were recorded. Send an email to the controller asking if any of the existing accounts receivable have been pledged as collateral. Send a letter to a sample of customers with outstanding accounts receivable asking them to verify that they have an outstanding balance as of 12/31. Using a sample of shipping records near year-end, compare the invoice date to the shipping date to ensure revenue was recorded in the proper period. Using a sample of sales invoices, compare the items sold to the associated shipping record to ensure the correct items and price were billed.