Consider this specific situation and write a brief memo to the audit team leader for the working papers describing possible issues, summarizing how auditors can determine proper year$-$end cutoff of sales transactions, and the implications if all shipments for the first five days of the following year were recorded as occurring in the current year. Based on your review, describe the major audit issues involved in this purchasing process.

Specifically, you must address the following rubric criteria:

Describe the context of the possible audit concerns to include sales$-$related commissions and FOB shipping point.

Define the major audit issues that will be involved in year$-$end cutoffs.

Explain the risk involved with recording sales transactions in incorrect periods.

Summarize the internal controls available for the purchasing processes to reduce risks.