Practice mode Auditing

Why should an auditor examine the subsequent receipt of revenues such as dividends, interest and commission?

Correct answer C. Identify cases of unrecorded revenue

Explanation

Checking amounts actually received after the year end against the books reveals income that was earned but never recorded, which is the main purpose of this vouching procedure.

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Why should an auditor examine the subsequent receipt of revenues such as dividends, interest and commission?

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Why should an auditor examine the subsequent receipt of revenues such as dividends, interest and commission?

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