An audit client sells 15 to 20 units of product
An audit client sells 15 to 20 units of product annually. A large portion of the annual sales occur in the last month of the fiscal year. Annual sales have not materially changed over the past five years. Which of the following approaches would be most effective concerning the timing of audit procedures for revenue?
a. The auditor should perform analytical procedures at an interim date and discuss any changes in the level of sales with senior management.
b. The auditor should inspect transactions occurring in the last month of the fiscal year and review the related sale contracts to determine that revenue was posted in the proper period.
c. The auditor should perform tests of controls at an interim date to obtain audit evidence about the operational effectiveness of internal controls over sales.
d. The auditor should review period- end compensation to determine whether bonuses were paid to meet earnings goals.

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