Day: January 20, 2026

Which ONE of the following populations should the auditor start from when testing for the completeness of reported sales of a manufacturing company?

Select ONE answer:

1. Sales receipts
2. Sales invoices
3. Goods dispatch notes
4. Sales orders

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – Revenue is usually recognised when goods have been despatched to the customer as this is the point at which control transfers to the customer. To test for completeness of sales, auditors should therefore start from the goods despatched notes.
4. Not correct

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