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AICPA CPA-Auditing Exam - Topic 1 Question 84 Discussion

Tracing shipping documents to prenumbered sales invoices provides evidence that:
A) No duplicate shipments or billings occurred.
B) Shipments to customers were properly invoiced.
C) All goods ordered by customers were shipped.
D) All prenumbered sales invoices were accounted for.

AICPA CPA-Auditing Exam - Topic 1 Question 84 Discussion

Actual exam question for AICPA's CPA-Auditing exam
Question #: 84
Topic #: 1
[All CPA-Auditing Questions]

Tracing shipping documents to prenumbered sales invoices provides evidence that:

Show Suggested Answer Hide Answer
Suggested Answer: A

Choice 'a' is correct. The auditor's report on compliance and on internal control over financial recording (based on an audit) must include the scope of testing of compliance and internal control.

Choice 'b' is incorrect. Material indications of illegal acts are not only reported to the members of the governing body of the audited entity and their senior staff officials but, in some circumstances, auditors should report illegal acts directly to external parties (such as the grantor agency).

Choice 'c' is incorrect. Although GAO standards require that the auditor communicate information regarding the nature, timing and extent of planned testing to officials of the audited entity and to individuals contracting for the audit, reporting of all changes is not required. (For example, immaterial changes to the audit program need not be reported.)

Choice 'd' is incorrect. Certain privileged or confidential information may be prohibited from general disclosure and should not be included in the audit report. The report should, however, disclose the nature of the information omitted and the requirement that makes an opinion necessary.


by Serina at Apr 10, 2024, 02:38 PM

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Lenna
7 months ago
Wait, how does tracing documents prove there were no duplicates?
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Dorothy
8 months ago
Definitely D, you need to account for all prenumbered invoices.
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Derick
8 months ago
Really? I thought it was about tracking all goods shipped.
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Elvis
8 months ago
Totally agree, B is the right answer!
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Vallie
8 months ago
It shows that shipments were invoiced correctly.
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Slyvia
9 months ago
I’m leaning towards the idea that it confirms all prenumbered invoices were accounted for, but I could be mixing it up with another topic.
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Leota
9 months ago
I feel like it might also relate to whether all goods ordered were shipped, but that seems less likely.
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Garry
9 months ago
I remember a practice question about this! It was similar, and I think it was about ensuring no duplicate shipments occurred.
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Alexis
9 months ago
I think tracing shipping documents to invoices shows that shipments were properly invoiced, but I'm not entirely sure if that's the only thing it proves.
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Muriel
9 months ago
I think I understand the logic here. Tracing the documents would provide evidence that the company has controls in place to ensure completeness and accuracy of the sales process. I'll select the answer that best captures that.
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Lyda
9 months ago
Wait, I'm not sure if that's the only thing it would show. Couldn't it also indicate that there were no duplicate shipments or billings, and that all prenumbered invoices were accounted for? I'll have to carefully evaluate each answer choice.
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Hayley
9 months ago
Okay, I've got this. Tracing the shipping documents back to the prenumbered sales invoices would show that all shipments were properly invoiced, so option B is the correct answer.
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Cassie
9 months ago
Hmm, I'm a little unsure about this one. I need to think through the different options and consider what each one is implying about the evidence provided.
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Jacqueline
9 months ago
This seems like a straightforward question about accounting controls. I'll focus on identifying the key evidence that tracing shipping documents to prenumbered sales invoices would provide.
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Junita
9 months ago
Okay, I've got a strategy here. I'll focus on understanding the requirements - we need to run an Azure function when the normalized request units per second for a container exceeds a specific value. Configuring an Azure Monitor alert sounds like it could work, but I'll double-check the documentation to make sure.
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Michal
9 months ago
Ugh, this is the kind of question I always struggle with. I'm going to have to really focus and try to eliminate the wrong answers.
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Raelene
9 months ago
I'm a bit confused by the wording of the question. Is the resolution field a custom field or the built-in Resolution field? I'll need to double-check that before deciding on the right approach.
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Roslyn
9 months ago
I'm a bit confused about the difference between a scope statement and KPIs. I'll need to review those concepts before deciding.
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Dahlia
10 months ago
I'm a little unsure on the specifics here. I'll need to re-read the question carefully and consider the options.
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Loren
1 year ago
Haha, I bet the accountants would love to have a 'Prenumbered Invoice Bingo' game to play during their audits. Option D all the way!
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Lettie
1 year ago
Yeah, it's a great way to prevent any duplicate shipments or billings from happening.
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Gilma
1 year ago
It's like a built-in control to make sure all invoices are accounted for.
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Kristine
1 year ago
I agree, having prenumbered invoices definitely helps with tracking them.
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Lili
1 year ago
C is a good option too. Confirming that all ordered goods were actually shipped is crucial for ensuring customer satisfaction.
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Marya
1 year ago
C) All goods ordered by customers were shipped.
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Dana
1 year ago
B) Shipments to customers were properly invoiced.
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Billy
1 year ago
A) No duplicate shipments or billings occurred.
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Lisha
1 year ago
I'm leaning towards B. It's important to verify that all customer shipments were correctly invoiced, even if some invoices may be missing.
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Herminia
1 year ago
Definitely. It's essential for maintaining the integrity of the sales and billing process.
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Kimbery
1 year ago
I also believe B is the best option. It's a key control to maintain proper documentation.
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Ernie
1 year ago
Agreed. It helps prevent errors and discrepancies in the billing process.
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Celeste
1 year ago
I think B is the correct answer too. It's crucial to ensure accuracy in invoicing.
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Frederica
1 year ago
I believe the answer is D) All prenumbered sales invoices were accounted for, as it ensures completeness of the sales invoices.
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Francoise
1 year ago
I agree with Tamra, because tracing shipping documents to prenumbered sales invoices helps ensure no duplicates.
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Emerson
1 year ago
Option D seems like the most comprehensive answer. Tracing shipping documents to sales invoices would ensure that all prenumbered invoices were properly accounted for.
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Delfina
1 year ago
I always make sure to trace shipping documents to sales invoices for accuracy.
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Marge
1 year ago
It's a good way to make sure there are no duplicate shipments or billings.
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Ashley
1 year ago
Tracing shipping documents to sales invoices is important to ensure all invoices are accounted for.
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Marvel
1 year ago
I agree, option D does seem like the most comprehensive answer.
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Tamra
1 year ago
I think the answer is A) No duplicate shipments or billings occurred.
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