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:

ANo duplicate shipments or billings occurred.

BShipments to customers were properly invoiced.

CAll goods ordered by customers were shipped.

DAll prenumbered sales invoices were accounted for.

Show Suggested 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

3 months ago

Wait, how does tracing documents prove there were no duplicates?

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Dorothy

3 months ago

Definitely D, you need to account for all prenumbered invoices.

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Derick

3 months ago

Really? I thought it was about tracking all goods shipped.

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Elvis

4 months ago

Totally agree, B is the right answer!

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Vallie

4 months ago

It shows that shipments were invoiced correctly.

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Slyvia

4 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

4 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

4 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

5 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

5 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

5 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

5 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

5 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

5 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

5 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

5 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

5 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

5 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

5 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

9 months 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

8 months ago

Yeah, it's a great way to prevent any duplicate shipments or billings from happening.

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Gilma

9 months ago

It's like a built-in control to make sure all invoices are accounted for.

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Kristine

9 months ago

I agree, having prenumbered invoices definitely helps with tracking them.

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Lili

10 months 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

8 months ago

C) All goods ordered by customers were shipped.

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Dana

9 months ago

B) Shipments to customers were properly invoiced.

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Billy

9 months ago

A) No duplicate shipments or billings occurred.

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Lisha

10 months 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

8 months ago

Definitely. It's essential for maintaining the integrity of the sales and billing process.

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Kimbery

9 months ago

I also believe B is the best option. It's a key control to maintain proper documentation.

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Ernie

10 months ago

Agreed. It helps prevent errors and discrepancies in the billing process.

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Celeste

10 months ago

I think B is the correct answer too. It's crucial to ensure accuracy in invoicing.

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Frederica

10 months 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

10 months ago

I agree with Tamra, because tracing shipping documents to prenumbered sales invoices helps ensure no duplicates.

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Emerson

11 months 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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