Reference no: EM132807414

Problem 1: An auditor is testing sales transactions. One step is to trace a sample of debit entries from the accounts receivable subsidiary ledger back to the supporting sales invoices. What would the auditor intend to establish by this step?

Select one:

1. All sales invoices have been properly posted to customer accounts
2. All sales invoices have been recorded
3. Debit entries in the accounts receivable subsidiary ledger are properly supported by sales invoices
4. Sales invoices represent bona fide sales