An Auditor Most Likely Would Limit Substantive Audit Tests of Sales

question 56

Multiple Choice

An auditor most likely would limit substantive audit tests of sales transactions when control risk is assessed as low for the occurrence assertion concerning sales transactions and the auditor has already gathered evidence supporting:

• A)opening and closing inventory balances.
• B)cash receipts and accounts receivable.
• C)shipping and receiving activities.
• D)cut-offs for sales and purchases.

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Definitions:

Prenatal Development

covers the growth and development of a fetus from conception to birth, highlighting the critical formation periods of various physical structures and systems.

Trimesters

The three periods of approximately three months each into which pregnancy is typically divided.

Embryonic Periods

Stages of development that occur in the embryo during the first 8 weeks after fertilization.

Sudden Infant Death Syndrome

An unexplained death, usually during sleep, of a seemingly healthy baby less than a year old.