Examine contract terms for large and unusual sales transactions to determine whether management has included adequate and understandable disclosures of those transactions in the footnotes to the financial statements.

The following are audit procedures from different transaction cycles:
1. Trace a sample of shipping documents to entry in the sales journal.
2. Examine a sample of warehouse removal slips for signature of authorized official.
3. Examine contract terms for large and unusual sales transactions to determine
whether management has included adequate and understandable disclosures of those
transactions in the footnotes to the financial statements.
4. Examine duplicate copy of shipping documents for evidence that quantities were
verified before shipment.
5. Select a sample of payroll payments processed and agree hours to employee time records.
6. Use audit software to foot and cross-foot the sales journal and trace the balance to the general ledger.
Required
Chapter 13 / OVERALL AUDIT STRATEGY AND AUDIT PROGRAM 447
7. Examine voucher packages and related vendor invoices for evidence of approval of
account classification.
8. Select a sample of sales invoices and agree prices to the approved price list.
9. Select a sample of entries in the cash receipts journal and trace to posting in indi-
vidual customer accounts receivable records.
a. For each audit procedure, identify whether it is a test of control or a substantive test
of transactions.
b. For each audit procedure, identify the transaction-related audit objective or objectives being satisfied.

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