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Which audit procedure is most effective in testing credit sales for overstatement?

(1) Trace a sample of postings from the sales journal to the sales account in the general ledger.

(2) Vouch a sample of recorded sales from the sales journal to shipping documents.

(3) Prepare an aging of accounts receivable.

(4) Trace a sample of initial sales orders to sales recorded in the sales journal.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9406373

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