During the Current Financial Year, the Client Company Began Dealing

question 3

Multiple Choice

During the current financial year, the client company began dealing with certain distributors on a consignment basis (goods were delivered to the distributor but not deemed sold until the distributor had on-sold them) .Which of the following audit procedures is least likely to bring this new fact to the auditor's attention?

• A)Test of cash receipts transactions.
• B)Tracing of shipping documents to the sales journal.
• C)Observation of physical inventory at the client company's premises.
• D)Confirmation of accounts receivable.