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2 years ago

If an auditor is expected to detect the overstatement of sales, what should the auditor trace transactions from?.

1 answer:

7 0

If an auditor is asked to observe the overstatement of sales, the auditor trace transactions from The cash receipts diary should be linked to the sales journal.

<h3>How would an auditor detect the overstatement of sales?</h3>

The auditor detect the overstatement of sales are given below-

Observe a sample of transfers from the sales journal to the central ledger's sales account.
Approve a sample of sales from the sales diary to the shipment papers.

Thus, The cash receipts diary should be linked to the sales journal.

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Korolek [52]

Answer:

Explanation:

The journal entries are shown below:

On April 5

Merchandise Inventory A/c $38,700

To Accounts payable A/c $38,700

(Being calculator purchased on credit)

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Merchandise inventory A/c Dr $830

To Cash A/c $830

(Being freight is paid by cash)

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Equipment A/c Dr $28,900

To Accounts payable A/c $28,900

(Being equipment is purchased on credit)

On April 8

Accounts payable A/c Dr $5,400

To Merchandise Inventory A/c$5,400

(Being goods returned)

On April 15

Accounts payable A/c Dr $33,300 ($38,700 - $5,400)

To Cash A/c $32,301

To Merchandise Inventory A/c $999 ($33,300 × 3%)

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3 years ago

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Evgesh-ka [11]

Answer:

mixed cost

Explanation:

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3 years ago

Data on consumer spending per capita or industrial purchasing trends would be identified in the ________ section of a global mar

larisa [96]

Answer:

The right approach will be "Economic".

Explanation:

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Answer:

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3 years ago

True/False

lara [203]

Answer:

the answer is True.

Explanation:

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