Regarding Purchase Returns and Allowances, Control Activities Useful in Reducing

question 63

Multiple Choice

Regarding purchase returns and allowances, control activities useful in reducing the risk of misstatements include all of the following except:

• A) all purchase returns should be authorized by the vendor.
• B) goods should be returned only with a proper purchase return authorization.
• C) the computer should match debit memo information with the authorization for purchase return and the shipping documents.
• D) the computer generates a report of all authorized purchase returns that have not been shipped or have not resulted in a debit memo.
• E) all of the above

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