The Emphasis for the Audit of Sales Return and Allowances

question 128

Multiple Choice

The emphasis for the audit of sales return and allowances is often placed on testing the existence of recorded transactions.However,the most important objective to consider is

• A)cutoff.
• B)valuation.
• C)accuracy.
• D)completeness.

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Definitions:

George Miller

A pioneering cognitive psychologist best known for his theory that the span of immediate memory and absolute judgment is limited to an average of seven items.

Magic Number

A concept in cognitive science referring to the limit of items an average human mind can hold in working memory, commonly thought to be seven plus or minus two.

Working Memory

An active system that processes the information in short-term memory.

Central Executive

A component of working memory model that oversees and regulates the flow of information from and to its subsidiary systems.