In Documenting the Nature,timing,and Extent of Audit Procedures,the Auditor Should

question 27

Multiple Choice

In documenting the nature,timing,and extent of audit procedures,the auditor should indicate

• A)who authorized the work
• B)the date the work was completed
• C)the results of the review of the work
• D)the date of the review
• E)the results of the risk assessment
• F)both A and C
• G)both B and D
• H)both A and E

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Definitions:

Gross Sales

represent the total sales revenue before any deductions are made for returns, allowances, or discounts.

Cash Sales

Transactions in which goods or services are exchanged immediately for cash payment.

Credit Sales

Sales made on credit, allowing buyers to pay at a later date, usually generating accounts receivable for the seller.

Discount Period

The time frame between the date of the sale and the due date when a discount is available for payment of an invoice.