Which of the Following Would Least Concern an Auditor Regarding

question 50

Multiple Choice

Which of the following would least concern an auditor regarding the lack of a specific authorization to conduct the sales transaction?

• A) granting of credit
• B) shipment of goods
• C) determination of discounts
• D) selling of goods for cash

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Definitions:

Option Contract

A contract which grants the holder the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Unilateral Contract

is a type of contract where only one party makes a promise or undertakes a performance obligation in exchange for an act by the other party, creating a binding agreement once the act is performed.

Revocable Offer

An offer that can be withdrawn by the offering party before it is accepted by the offeree, typically within a certain time frame.

Unilateral Offer

An offer made by one party where acceptance is performed through an action rather than a promise of action.