Which One of the Following Is NOT an Auditor's Concern

question 109

Multiple Choice

Which one of the following is NOT an auditor's concern about a key authorisation point in the sales/collection cycle?

• A) The receiving room must have authorisation before releasing items to inventory control.
• B) Credit must be authorised before the sale.
• C) Goods must be shipped after the authorisation.
• D) Prices must be authorised.

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Definitions:

Elastic

Describes a situation in which the supply or demand for a good or service is highly responsive to changes in price.

Long Run

A period in economic analysis where all factors of production and costs are variable, allowing for full adjustment to changes in the market or economy.

Short Run

A period in economic theory during which at least one factor of production is fixed, limiting the capacity to adjust to changes in market demand.

Elastic

Describes a situation where the quantity demanded or supplied of a good is sensitive to changes in price.