An auditor is testing the completeness of sales for a nonissuer. Which of the following audit procedures is MOST relevant?

Answer options:

Tracing a sample of sales invoices to the shipping documents.

Tracing a sample of shipping documents to the sales invoices and sales journal.

Vouching a sample of recorded sales from the sales journal to the shipping documents.

Recalculating the prices on a sample of sales invoices.

How to approach this question

Completeness = Start at the Source (Shipping) -> Go to the Book (Journal). Occurrence = Start at the Book (Journal) -> Go to the Source (Shipping).

Full Answer

B.Tracing a sample of shipping documents to the sales invoices and sales journal.✓ Correct

To test completeness of sales (unrecorded sales), the auditor should start with the source documents (shipping documents) and trace them forward to the sales invoices and sales journal to ensure they were recorded.

Common mistakes

Confusing Tracing (Completeness) with Vouching (Existence/Occurrence).

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