completeness MCQ

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May 24, 2018 at 12:23 pm #453731
humai
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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
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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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