When designing substantive tests of transaction for Sales, the auditor is concerned with several types of misstatements. What are these types of misstatements and are they intentional or unintentional?

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When designing substantive tests of transaction for Sales, the auditor is concerned with several types of misstatements. What are these types of misstatements and are they intentional or unintentional?


Answer:

The auditor is concerned with sales being included in the journals for which no shipment was made, sales recorded more than once, and shipments being made to non-existent customers and recorded as sales. The first two types of misstatements can be intentional or unintentional, but the third type is always intentional.

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