Auditors will examine significant sales returns immediately subsequent to the period under audit in order to do which of the following?
A)Substantiate cutoff and the occurrence of net sales transactions.
B)Test the sufficiency of cash balances to cover refunds.
C)Monitor customer satisfaction for disclosure.
D)Assess the nature of procedures that will be performed for the next period's audit.

Question

Quizplus · Accepted Answer

Auditors will examine significant sales returns immediately subsequent to the period under audit in order to substantiate cutoff and the occurrence of net sales transactions. This helps ensure that sales are recorded in the correct period and that the revenue and related expenses are properly matched.

Auditors Will Examine Significant Sales Returns Immediately Subsequent to the Period