An auditor is testing the 'Occurrence' assertion for sales. Which procedure is most appropriate?

Answer options:

Trace a sample of shipping documents to the sales journal.

Vouch a sample of sales journal entries to shipping documents.

Recalculate the unit price on sales invoices.

Review the sales journal for unusual large transactions.

How to approach this question

Occurrence = Did it happen? Start with the Record (Journal) and look for the Proof (Shipping Doc).

Full Answer

B.Vouch a sample of sales journal entries to shipping documents.✓ Correct

Vouch a sample of sales journal entries to shipping documents.

Vouching from the accounting records (sales journal) back to the supporting documentation (shipping documents) provides evidence that the recorded transactions actually occurred.

Common mistakes

Confusing Vouching (Occurrence) with Tracing (Completeness).

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