Which of the following most likely would be detected by a review of a client's sales cutoff?
A) excessive sales discounts
B) unrecorded sales for the year
C) unauthorized goods returned for credit
D) lapping of year-end accounts receivable

Question

Quizplus · Accepted Answer

Sales cutoff refers to the inclusion of sales in the correct accounting period, so unrecorded sales for the year would be most likely detected by reviewing sales cutoff. Excessive sales discounts and unauthorized goods returned for credit would be detected in other account reviews such as discounts and returns, respectively. Lapping of year-end accounts receivable would be detected in the review of accounts receivable.

Which of the Following Most Likely Would Be Detected by a Review