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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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3 years ago

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3 years ago

The budget components for Park Company for the quarter ended June 30 appear below. Park sells trash cans for $12 each. Budgeted

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Answer:

$96,000

Explanation:

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<u>Materials Purchase Budget</u>

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Add Budgeted Closing Materials (50,000×20%×5) 50,000

Total Materials 180,000

Less Budgeted Opening Inventory (4,000×5) (20,000)

Budgeted Materials 160,000

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3 years ago

Seth Silver had the following items of income during the taxable year: Interest income from a checking account $1,000 Interest i

34kurt

Answer:

c. $3,800

Explanation:

Calculation for the amount of taxable income

Using this formula

Taxable income =Interest income from a checking account+Interest income from corporate bonds +Interest income from federal bonds

Let plug in the formula

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Taxable income=$3,800

Therefore on his current year tax return the amount of his taxable income will be $3,800

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3 years ago