How to audit the Sales revenue FSLI

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Accepted Answer

To audit Sales revenue FSLI, review sales contracts, test revenue recognition, analyze sales returns and allowances, and confirm sales transactions.

Review sales contracts to ensure they are properly recorded and accounted for
Test revenue recognition to verify that revenue is recognized in the correct period
Analyze sales returns and allowances to ensure they are accurately reflected in the financial statements
Confirm sales transactions with customers to validate the accuracy of reported sales
Perform analytical procedures to identify any unusual trends or fluctuations in sales revenue