If the objective of a test of details is to detect overstatements of sales, the auditor should trace transactions from the:

Choice "d" is correct. If the objective of a test of details is to detect overstatements of sales

(existence assertion), the auditor should trace transactions from the accounting records (i.e., sales

journal) to the source documents (e.g., customer order, sales order, shipping documents, etc.).

Choices "a" and "c" are incorrect. Tracing from the supporting documents to the accounting records

gives assurance as to the completeness assertion (all sales are properly included).

Choice "b" is incorrect. Tracing from the sales journal to the cash receipts journal only shows whether

cash has been received for the sale. Failure to find a related cash receipt may indicate simply that the

sale was made on account.