Which One of the Following Is of the Least Concern

question 4

Multiple Choice

Which one of the following is of the least concern to the auditor when designing substantive tests of transactions for the sales/collection cycle?

• A)Sales being included in the journal for which no shipment was made
• B)Sales to related parties, such as officers and subsidiaries
• C)Sales recorded more than once
• D)Shipments being made to nonexistent customers and recorded as sales

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Definitions:

Bargain and Sale Deed

A legal document transferring property ownership without making any warranties about the title.

Quitclaim Deed

A deed conveying only the right, title, and interest of the grantor in the property described, as distinguished from a deed conveying the property itself.

Exclusive Right to Sell Contract

An agreement between a property owner and a real estate broker giving the broker the sole authority to sell the property on the owner's behalf.

Commission

A fee or percentage of a sale paid to an agent or employee for facilitating or completing a transaction.