Sales returns and allowances are often ignored by auditors because they are often immaterial.

Name: Sales returns and allowances are often ignored by auditors because they are often immaterial.
Brand: Quizplus
Rating: 5.0 (32 reviews)

Question

Quizplus · Accepted Answer

Sales returns and allowances may be immaterial individually, but in aggregate, they can have a significant impact on the financial statements. As such, auditors are required to test and evaluate the company's process for accounting for sales returns and allowances.

Sales Returns and Allowances Are Often Ignored by Auditors Because