AA – L2 – SA – Q3.9 – Existence Evidence

Audit procedure for existence evidence.

Question

Which of the following audit procedures is primarily intended to provide audit evidence as to existence?

A Matching sales invoices to goods dispatch notes

B Casting the sales ledger

C Confirming receivables balances with customers

D Checking the dating of outstanding cheques

Answer

Explanation:
Confirming receivables with customers (C) directly verifies their existence by obtaining external confirmation. Matching invoices to dispatch notes (A) tests occurrence, casting the ledger (B) tests completeness, and checking cheque dates (D) relates to cash. Thus, C is correct.

Tags: Audit Evidence, Existence, ICAG, Receivables Confirmation
Level: Level 2

Topic: Audit and Assurance Evidence

Uploader: Salamat Hamid