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:

Opportunity Cost

Failing to capitalize on potential gains from other alternatives when making a singular choice.

Consumer Goods

Products and services that are consumed by individuals or households for personal satisfaction and daily use.

Capital Goods

Physical assets utilized by businesses to produce goods and services, such as buildings, machinery, and equipment.

Allocation of Resources

The process of distributing scarce resources among various uses or activities in a way that maximizes the achievement of objectives.