The Auditor Has Decided That There Is a Risk of Material

Multiple Choice

The auditor has decided that there is a risk of material misstatement with respect to sales revenue.Which of the following audit tests should the auditor use to quantify the potential error?

A) discuss the process used to assign credit limits with the sales manager and the controller
B) send external confirmations to customers with accounts receivable balances
C) determine whether all sales tested have a supporting customer purchase order
D) determine whether all sales tested have a matching bill of lading