30) The independent auditor has selected a random sample of shipments made durin

Question

30) The independent auditor has selected a random sample of shipments made during the last week of the client’s reporting year from the client’s shipping log. She is tracing them to the client’s sales journal to determine whether or not they were recorded in the year undergoing audit. Which of the following detailed audit objectives may be accomplished by this test:

A) that sales actually made during the week were recorded in the sales journal

B) that sales recorded in sales journal for the week were legitimate

C) both A and B are accomplished by this test

D) neither A or B may be accomplished by this test

Explanation / Answer

ANS: The answer is option "A".Because auditor is doing audit on sample basis and she wants to ensure that shipments made during the last week of reporting year were recorded in that year only.The objective of the auditor is to check that transaction is recorded in correct year.To check whether the sales recorded in sales journal were legitimate or not,auditor needs to do further analysis and investigation.So the answer is option "A"

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