Which of the Following Would Least Concern an Auditor Regarding

question 72

Multiple Choice

Which of the following would least concern an auditor regarding the lack of a specific authorization to conduct the sales transaction?

• A)Granting of credit
• B)Shipment of goods
• C)Determination of discounts
• D)Selling of goods for cash

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Definitions:

Operating Rights

The granted permissions or authorizations for a company to conduct specific operations within a regulatory or legal framework.

Natural Resources

Physical or material resources occurring in nature that can be used for economic gain, such as water, timber, coal, oil, and minerals.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Research and Development

Activities undertaken by a business to develop new products or improve existing ones, often involving innovation and technological advancement.