In the audit of Maxref Corporation (Maxref) for the financial year ended 30 June 2020,...
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Accounting
In the audit of Maxref Corporation (Maxref) for the financial year ended 30 June 2020, you are assigned to check the sale account totalling AU$2,000,000. You have chosen a list of invoices (column 2) of certain customers (column 3) and would like to check these invoices with the sales journal. The result is presented in columns (4) and (5) in the Table below (all amounts are in AU$).
Date
(2020)
Invoice
number
Account
Amount on
Amount on
invoices
sales journal
(1)
(2)
(3)
(4)
(5)
Jan. 11
13236
Chelsea Ltd
3,500
3,500
Jan. 22
15326
Melbourne Co.
15,550
15,550
Feb. 9
15768
Laverton Hill
26,460
26,460
Mar. 15
17524
Sydney Harbour
62,500
62,500
Apr. 25
18014
HighTech Ltd
98,000
98,000
Apr. 28
18015
Mornington Pty
205,000
205,000
June. 20
19000
Bachurch Corp.
307,600
307,600
June. 30
19001
Point Cook Ltd
200,000
200,000
June. 30
19002
Point Cook Ltd
65,000
65,000
Required:
Some people think that the audit procedure performed by the auditor is a test of control. Present your idea and argument to support your answer.
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