Question

In: Accounting

b. Jenny and Sam are the auditors for the AAA audit firm. They discuss an audit...

b. Jenny and Sam are the auditors for the AAA audit firm. They discuss an audit
program for the sales account. Jenny and Sam disagree about whether they
should use procedure (1) or (2) below to test the Occurrence assertion for the
sales account:
Procedure (1): Select a sample of sales invoices, delivery dockets and customer
orders and agree the details to the details recorded in the sales journal.
Procedure (2): Select a sample of sales from the sales journal and agree the
details in the journal to the sales invoices, delivery dockets and customer orders.
Required:
Advise the senior auditor of AAA audit firm:
1. Which procedure provides evidence about the Occurrence assertion? Explain
your answer.
2. Which assertion does the other procedure provide evidence about? Explain your
answer.

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