Which One of the Following Best Describes the Auditor's Responsibilities

question 108

Multiple Choice

Which one of the following best describes the auditor's responsibilities regarding appropriate authorizations in the sales/collections cycle?

• A) Credit must be authorized before the sale.
• B) Goods must be shipped after the authorization.
• C) Prices must be authorized.
• D) All of the above should be of concern to the auditor.

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Definitions:

Supply Curve

A visual display mapping out the link between how much of a good is supplied and its price.

Efficiency

The extent to which resources are used in the most effective way to produce goods and services, minimizing waste.

Equality

Equality refers to the state of being equal, especially in status, rights, and opportunities.

Total Surplus

Total surplus refers to the sum of consumer surplus and producer surplus in a market, representing the overall benefit that market participants gain from engaging in trade.