Question

18 The following (1 through 16) are the balance-related and transaction-related audit objectives. 1 2 3 Balance-related objectives Existence Completeness Accuracy Cutoff Detail tie-in Realizable value Classification Rights & obligations Presentation 4 5 6 7 8 9 Transaction-related objectives Occurrence Completeness Accuracy Classification Timing Posting & summarization Presentation 10 11 12 13 14 15 16 Identify and write the number of the specific audit objective (1 through 16) that each of the following specific audit procedures satisfies in the audit of sales, accounts receivable, and cash receipts for the year ended December 31, 2019. Balance-related objective Transaction-related objective 1 2 3 4 Examine a sample of electronic sales invoices to determine whether each order has been shipped, as evidenced by a shipping document number. Add all customer balances in the accounts receivable trial balance and agree the amount to the general ledger. For a sample of sales transactions selected from the sales journal, verify that the amount of the transaction has been recorded in the correct customer account in the accounts receivable subledger. Inquire of the client whether any accounts receivable balances have been pledged as collateral on long-term debt and determine whether all required information is included in the footnote description for long-term debt. For a sample of shipping documents selected from shipping records, trace each shipping document to a transaction recorded in the sales journal. Discuss with credit department personnel the likelihood of collection of all accounts as of December 31, 2019, with a balance greater than $100,000 and greater than 90 days old as of year- end. 5 6