Question

Alan is an audit intern from a local state university, and is working on his first audit with his supervisor, Jared; an audit senior manager. Alan approaches Jared for advice as another, more experienced member of his team has asked him to select and examine documentation associated with sales returns. Alan is unsure as to what documentation he should check. Which of the following represents Jared's most appropriate response to this question? Jared should advise Alan that he should calculate a percentage of goods returned relative to overall credit sales to determine if the amount is material. Jared should advise Alan to approach the internal audit function and request they gather appropriate documentation and evidence for this area. Jared should advise Alan that he should consider a reperformance procedure whereby Jared walks through the sales return process as a fictitious customer. Jared should advise Alan that he may wish to consider selecting a sample of credit memos associated with sales returns to check the amounts credited back to the customer's account. eTextbook and Media Save for Later Attempts: 1 of 2 used Submit Answer

          Alan is an audit intern from a local state university, and is working on his first audit with his supervisor, Jared; an audit senior manager.
Alan approaches Jared for advice as another, more experienced member of his team has asked him to select and examine
documentation associated with sales returns. Alan is unsure as to what documentation he should check. Which of the following
represents Jared's most appropriate response to this question?
Jared should advise Alan that he should calculate a percentage of goods returned relative to overall credit sales to
determine if the amount is material.
Jared should advise Alan to approach the internal audit function and request they gather appropriate documentation and
evidence for this area.
Jared should advise Alan that he should consider a reperformance procedure whereby Jared walks through the sales return
process as a fictitious customer.
Jared should advise Alan that he may wish to consider selecting a sample of credit memos associated with sales returns to
check the amounts credited back to the customer's account.
eTextbook and Media
Save for Later
Attempts: 1 of 2 used Submit Answer

Alan is an audit intern from a local state university, and is working on his first audit with his supervisor, Jared; an audit senior manager.
Alan approaches Jared for advice as another, more experienced member of his team has asked him to select and examine
documentation associated with sales returns. Alan is unsure as to what documentation he should check. Which of the following
represents Jared's most appropriate response to this question?
Jared should advise Alan that he should calculate a percentage of goods returned relative to overall credit sales to
determine if the amount is material.
Jared should advise Alan to approach the internal audit function and request they gather appropriate documentation and
evidence for this area.
Jared should advise Alan that he should consider a reperformance procedure whereby Jared walks through the sales return
process as a fictitious customer.
Jared should advise Alan that he may wish to consider selecting a sample of credit memos associated with sales returns to
check the amounts credited back to the customer's account.
eTextbook and Media
Save for Later
Attempts: 1 of 2 used Submit Answer

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