Which one of the following best describes the auditor's responsibilities regarding appropriate authorizations in the sales/collections cycle?
A) Credit must be authorized before the sale.
B) Goods must be shipped after the authorization.
C) Prices must be authorized.
D) All of the above should be of concern to the auditor.

Question

Quizplus · Accepted Answer

All of the above should be of concern to the auditor. The auditor is responsible for ensuring that credit is properly authorized before the sale takes place, goods are shipped only after the appropriate authorization, and prices are authorized as well. The auditor must ensure that there are proper controls in place to prevent unauthorized sales or collections from taking place.

Which One of the Following Best Describes the Auditor's Responsibilities