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If the Client's Internal Control for Recording Sales Returns and Allowances

Question 108

Multiple Choice

If the client's internal control for recording sales returns and allowances is evaluated as effective:


A) a sample of sales returns and allowances subsequent to closing date are examined.
B) all sales returns must be traced to supporting documentation.
C) a larger sample is needed to verify cutoff.
D) all sales returns must be confirmed with the customer.

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