An auditor is testing the completeness of the sales account. Which of the following audit procedures would be most relevant?

Answer options:

Select a sample of entries in the sales journal and vouch them to shipping documents.

Select a sample of shipping documents and trace them to the sales journal.

Recalculate the mathematical accuracy of the sales journal.

Confirm accounts receivable balances with customers.

How to approach this question

Direction of testing: Vouching (Down) = Existence. Tracing (Up) = Completeness. Start with the source (shipping doc) to see if it made it to the books.

Full Answer

B.Select a sample of shipping documents and trace them to the sales journal.✓ Correct

Select a sample of shipping documents and trace them to the sales journal.

To test completeness of sales, the auditor starts with the source documents (shipping documents) and traces them forward to the accounting records (sales journal) to ensure all shipments were recorded as sales.

Common mistakes

Confusing Vouching (Existence) with Tracing (Completeness).

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