Why Do Auditors Inspect Records and Documents

question 7

Multiple Choice

Why do auditors inspect records and documents?

• A) to check the dates of transactions
• B) for evidence that management have authorized significant purchases
• C) to check that a transaction occurred
• D) all of the above

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Definitions:

Cumulative Quantity Discounts

A pricing strategy that offers a discount based on the total quantity of goods a customer has purchased over a specified time period, encouraging repeat business.

Free Goods

Products or services offered without charge to the consumer, often used as promotional items, incentives, or part of a marketing strategy to attract attention or reward loyalty.

Customary Pricing Adjustments

Price changes that occur regularly based on established practices, market conditions, or negotiations, often seen in retail or service industries.

Geographical Adjustments

Modifications or changes in prices, products, or marketing strategies to accommodate specific geographic locations and cultural preferences.