You are part of engagement team conducting audit of an entity engaged in manufacturing business. State few audit procedures you would undertake to…

Following audit procedures can be performed to perform to verify that recorded sales in financial statements represent goods actually sold during the period and recorded sales are not overstated. Check whether a single sales invoice is recorded twice or a cancelled sales invoice has been recorded.Test check few invoices with their relevant entries in sales journal.Obtain confirmation from few customers to ensure genuineness of sales transactionCheck whether any fictitious customers and sales have been recorded.Verify whether any shipments were done without the consent and agreement of the customer, especially at the year end to inflate the sales figureWhether unearned revenue recorded as earned.Whether any substantial uncertainty exists about collectabilityWhether customer obligations are contingent on other (financing, resale, etc.).Review sequence of sales invoicesReview journal entries for unusual transactionsCalculate the ratio of sales return to sales and compare it with previous year and enquire for the reasons for unusual variation.