Which One of the Following Would NOT Be a Test

question 22

Multiple Choice

Which one of the following would NOT be a test used when auditing accrued sales commissions?

• A) Test the detail tie-in in the commissions expense account at interim dates.
• B) Test the calculation (recalculate) based on the agreement between client and employees.
• C) Confirm the commissions directly with the employees.
• D) Compare the method of accruing commissions with the previous years.

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Definitions:

Inducement

An incentive or motivation provided to encourage a certain action or behavior, often used in legal and business contexts.

Output Contract

An agreement between a seller and buyer where the seller agrees to sell all of the production to the buyer, who in turn agrees to accept and pay for the product.

Illusory Contract

A contract that appears to be binding but does not actually commit one or more parties to an actionable obligation.

Defame

To damage someone's reputation through false or unjustified statements.