When testing the occurrence objective for sales, the auditor is concerned

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When testing the occurrence objective for sales, the auditor is concerned with the possibility of three types of misstatements. One type is sales being included in the journal for which no shipment was made. Discuss the other two types of misstatements.


Answer:

The auditor is also concerned with the possibility of 

(1) shipments being made to nonexistent customers and recorded as sales, and
(2) sales being recorded more than once.

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