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The following is an audit procedure that an auditor performs relating to the financial report audit...

The following is an audit procedure that an auditor performs relating to the financial report audit of a client.

State the most appropriate assertion which is being tested by the audit procedure.

Note: No marks will be given if more than one category of assertion is answered.

Select a sample of sales invoices, delivery dockets and customer orders and agree the details to the sales in the sales journal.

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Answer #1

Most important audit assertion which is being tested by the audit procedure will be OCCURRENCE of the transaction because all the other audit procedure for based upon whether the transaction has occurred or not, so if there is an occurrence of the transaction, then only the auditor can proceed onto the next steps of checking the completeness or regularity of the transaction and the disclosure requirements of transactions.

So, it can be said that the most appropriate audit assertion which is being tested by the audit procedure is occurance of the transaction.

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