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fenix001 [56]
3 years ago
11

Auditors are especially concerned with three aspects of internal control for the sales and collection cycle. Which of the follow

ing is not one of their major concerns?
A) Controls over cutoff
B) Controls that prevent or detect embezzlements
C) Controls over sales discounts
D) Controls related to the allowance for uncollectible accounts
Social Studies
1 answer:
inessss [21]3 years ago
3 0

Answer:

The correct answer to the following question is option C) control over sales discount .

Explanation:

Sales and Collection cycle is also know as RRR cycle ( which is Revenue, Receivables and Receipts cycle ), which includes many classes of transaction, but the primary ones are sales and cash receipts . This cycle refers to the process which begins with customer buying product or service and ends when business receives payment.

When auditors test the internal control for this cycle they're concerned with controls over cutoff, controls related to allowance for uncollectible accounts and controls that prevent embezzlements .

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