Transaction-related audit objectives

Transaction-related objectives concern what the company recorded during the financial year, such as sales, purchases, wages and cash receipts. Suppose Jengka Furniture records a credit sale of 20 tables at RM500 each, totalling RM10,000. Each objective asks a different question about that sale. mia.org.my

Objective	Question the auditor asks	Example of an audit procedure
Occurrence	Did the recorded sale actually take place?	Select the RM10,000 entry from the sales journal and inspect the customer’s order and signed delivery note.
Completeness	Did the company record all sales that should have been recorded?	Select signed delivery notes and trace them to the sales journal. Investigate a completed delivery with no corresponding sales entry.
Accuracy	Did the company record the correct quantity, price and amount?	Agree the 20 tables to the delivery note and RM500 to the agreed price. Recalculate the invoice as 20 × RM500 = RM10,000.
Cut-off or timing	Did the company record the sale in the correct financial year?	Examine deliveries immediately before and after 31 December. If the contract transfers control on delivery and the customer received the tables on 3 January, the sale belongs in January.
Classification	Did the company record the transaction in the correct account?	Check that sales of furniture appear as trading revenue and that proceeds from selling an old delivery van are recorded separately.
Presentation	Does the financial statement presentation clearly explain the transaction and any required disclosure?	Review how the company describes its revenue and check that the description is consistent with its sales arrangements.

Posting and summarisation is another objective commonly used in textbook exercises. For the RM10,000 credit sale, the auditor can check that the amount was posted to the correct customer’s account and that the sales journal total agrees with the general ledger.