1. (TCO I) Accounts Receivable ? For each of the following, please explain if an auditor's review of the client's sales cutoff would detect these problems: (a) Would excessive goods returned for credit be detected by a sales cut?off test ? why or why not? (b) Would unrecorded sales discounts be detected by a sales cut?off test ? why or why not? (c) Lapping of year?end accounts receivable be detected by a sales cut?off test ? why or why not? (d) In?ated sales for the year ? could it be detected by a sales?cut?off test ? why or why not? (Points : 25)
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