Which one of the following is of the least concern to the auditor when designing substantive tests of transactions for the sales/collection cycle?
A)Sales being included in the journal for which no shipment was made
B)Sales to related parties, such as officers and subsidiaries
C)Sales recorded more than once
D)Shipments being made to nonexistent customers and recorded as sales

Question

Quizplus · Accepted Answer

Sales to related parties are typically less of a concern for auditors in the context of designing substantive tests for the sales/collection cycle, as these transactions are often disclosed separately and are not inherently indicative of errors or fraud in the sales recording process.

Which One of the Following Is of the Least Concern