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The Test of Details of Balance Procedure That Requires the Auditor

question 66

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The test of details of balance procedure that requires the auditor to review contracts with suppliers and customers and inquire of management for the possibility of the inclusion of consigned or other non-owned inventory is an attempt to satisfy the objective of


Definitions:

Sales Returns

Sales returns refer to the process of refunding a customer for the return of goods, which results in a reduction of revenues on the seller's financial statements.

Sales Discounts

Reductions from the listed price given by a seller to a buyer as an incentive to purchase.

Expense Accounts

These accounts are used to track the money spent or costs incurred in a company's operations.

Sales Discount

A reduction in the price charged to customers, typically given in exchange for prompt payment.

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