Simon Owns a Clothing Store,Simonello

Multiple Choice

Simon owns a clothing store,Simonello.Simonello recently purchased a material amount of fabric from Simonique Inc. ,a textile company also owned by Simon.With regards to this transaction,the auditors should

A) request a confirmation from Simonique that the transaction took place.
B) inspect the textile received in the warehouse to ensure that the amount sent equals the amount ordered.
C) qualify the audit report,as this puts management's integrity into question.
D) verify that the business relationship is disclosed in the financial statements.