ccounting 1. The auditor spends significant time auditing cash discounts and sales returns because A. management needs to authorize these transactions. B. these transactions reduce income. C. the materiality is higher.

Auditing: A Risk Based-Approach (MindTap Course List)
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ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
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Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
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Accounting

1. The auditor spends significant time auditing cash discounts and sales returns because

A. management needs to authorize these transactions.

B. these transactions reduce income.

C. the materiality is higher.

D. the risk of transactions being recorded to conceal stolen cash is higher.

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