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Unformatted text preview: © W.R. Knechel Why audit the B/S rather than the I/S? The income statement might have some misclassifications (Repairs and Main --> B/S) How important are IS misclassifications? 3. Will next year's B/S be correct? 4. Overstatements of Sales will show up in AR. 5. Easier to audit, fewer transactions in ending balance © W.R. Knechel Direction of Tests for Sales Completeness start Existence start Customer order Shipping document Duplicate sales invoice Sales journal General journal Accounts receivable master file =...
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- Fall '08
- Balance Sheet, Expense, B/S, B/S accounts, W.R. Knechel