Jemimah and Peter have been given the task of auditing the sales accounts of Starbright LLC; a supplier of telescopes and other astronomical equipment throughout the United States. Their supervisor has told them that their focus should be on testing the occurrence assertion of sales. Based on this notification, which of the following represents the most suitable way for Peter and Jemimah to consider auditing this assertion? O Peter and Jemimah should consider obtaining a sample of sales transactions and matching them up one-for-one with their associated receivables. This will help them to confirm the occurrence assertion does not contain any misstatements. O Peter and Jemimah should think about obtaining a representative sample of revenue transactions and matching them up against their respective bills of lading. This will help them to audit the occurrence assertion of revenue. O Peter and Jemimah should think about obtaining a sample of transactions and matching the respective bills of lading with the associated payable. This would help audit the existence assertion for this area. O None of these answer choices are correct.
Added by George J.
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Step 1: The focus is on testing the occurrence assertion of sales, which means ensuring that the recorded sales actually occurred. Show more…
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