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You send your assistant out to verify the purchases for occurrence, and he returns, very pleased. It appears that Mr Shiftey was very helpful, and he followed Mr Shiftey's suggestions. You assistant explains that, as instructed, he used the random number table to select the items he would investigate. As advised by Mr Shiftey, he selected several invoices and traced them to the journal and from the journals to line items in the Purchases Ledger. All the items traced were correct.
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Question 1: Has your assistant tested for occurrence? Explain in terms of your knowledge of auditing how a test for occurrence should be undertaken.
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