Which of the following would most likely be detected by an auditor's review of a client's sales cutoff?
A) Excessive sales discounts
B) Unrecorded sales for the year
C) Unauthorised goods returned for credit
D) Lapping of year- end accounts receivable

Question

Quizplus · Accepted Answer

A sales cutoff review involves ensuring that all sales and related transactions from the end of the year are properly recorded in the correct accounting period. Therefore, unrecorded sales for the year would be the most likely issue to be detected through this review. Excessive sales discounts, unauthorised goods returned for credit, and lapping of A/R would all require different audit procedures outside of a sales cutoff review.

Which of the Following Would Most Likely Be Detected by an Auditor's