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Seb Lee and Boris Shonkoff are discussing the audit program for the revenue account.
Seb Lee and Boris Shonkoff are discussing the audit program for the revenue account. They disagree about whether they should use procedure #1 or #2 below to test the occurrence assertion for the revenue account.
1) Select a sample of sales from the sales journal and agree the details in the journal to the sales invoices, delivery slips, and customer orders.
2) Select a sample of sales invoices, delivery slips and customer orders and agree the details to the details recorded in the sales journal.
Required:
Which test provides evidence about the occurrence assertion? Why? Which assertion does the other test provide evidence about?
