A possible misstatement which can occur with regards to cash receipts, and which may not be discovered as part of the audit of the bank reconciliation, is the failure of customers being invoiced. Which assertion will be misstated with regards to sales of an entity, where this occurs?

A properly planned and performed audit may fail to detect a material misstatement resulting from fraud because: A. an audit is planned and performed to provide reasonable assurance of detecting material misstatements caused by errors but not by fraud B. the auditor did not consider factors influencing audit risk for account balances that have effects pervasive to the financial report taken as a whole. C. the factors considered in assessing control risk indicated an increased risk of error but only a low risk of fraud in the financial report. D. audit procedures that are effective for detecting an error may be ineffective for fraud that is concealed through collusion

Select the correct alternative to complete the sentence pertaining to the revenue and receipts cycle. An Internal Sales Order is authorised by signature by the credit controller before being sent to the warehouse. The objective of this control is to ensure that ______.a.the sale is made to a customer who can pay their accountb.goods are indeed in stock to be despatchedc.the recording of incorrect or incomplete order details is preventedd.the sales order is acted upon timeously

The billing department is not responsible forSelect one:a.updating the inventory subsidiary recordsb.recording the sale in the sales journalc.notifying accounts receivable of the saled.sending the invoice to the customer

TRUE OR FALSE: It is possible to find invoices in one of the cash journals.*1 pointTrueFalseTRUE OR FALSE:  Every transaction that goes into a cash journal must impact the bank column.*1 pointTrueFalseTRUE OR FALSE: Source documents are completed after the journals have been drawn up.*1 pointTrueFalse

If you were asked to check the validity of an invoice that you have received from Mid-West Supply – which of the following documents would you reconcile the vendor’s invoice with?