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

Question

Quizplus · Accepted Answer

An auditor's review of a client's sales cutoff would most likely detect unrecorded sales for the year, which occur when sales are made near the end of the year but not recorded until the following year. The cutoff review ensures that the revenue and accounts receivable accounts are properly stated at year-end, so any unrecorded sales would be identified and corrected. The other options are not specifically related to the sales cutoff review.

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