If the Client's Internal Control for Recording Sales Returns and Allowances

question 65

Multiple Choice

If the client's internal control for recording sales returns and allowances is evaluated as ineffective,

• A) a larger sample may be needed to verify cutoff.
• B) sampling is not appropriate.
• C) all sales returns must be traced to supporting documentation.
• D) all sales returns must be confirmed with the customer.

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Definitions:

Organization Development

A planned, systematic process aimed at improving the effectiveness, health, and self-renewing capability of organizations through change in policies, power, leadership, control functions, and culture.

Explicit And Implicit Coercion

Direct and indirect methods of compelling someone to act in a particular way through force or intimidation.

Negative Consequences

Unfavorable outcomes or punishments resulting from an action or decision.

Change

The act or process through which something becomes different.