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completeness MCQ

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › completeness MCQ

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by Ken Garrett.
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  • May 24, 2018 at 12:23 pm #453731
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Q.Completeness of income has has been identified
    as a significant audit risk for the audit of Stragazers.
    Which of the following procedures would be least likely response to identify understatement of income

    a) Compare income by shop and category to prior year
    b)Inspect credit notes issued post year end
    c)Agree total on till receipts to the sales day book , bank statements and cashbook
    d)Obtain sales day book and cast to confirm accuracy

    Sir correct ans is B but please can you explain

    May 24, 2018 at 2:30 pm #453756
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10594
    • ☆☆☆☆☆

    Because there is no way that inspecting credit notes would detect an understatement of revenue. It would help to detect overstatement where false invoices were processed before year end and then reversed after year end.

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