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Part $1$

What is the difference between the$$ auditor's approach in verifying sales returns and allowances and that for$$ sales? Explain the reasons for the difference.

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Part $1$

A$.$

The verification of sales returns and allowances is quite different from the verification of$$ sales, since sales returns and allowances are normally an insignificant portion of operations and therefore receive little attention from the auditor.

B$.$

The verification of sales returns and allowances is quite different from the verification of$$ sales, since the completeness objective cannot be ignored because unrecorded sales returns and allowances can materially overstate net income.

C$.$

The verification of sales returns and allowances is quite different from the verification of$$ sales, because the primary emphasis the auditor places on sales returns and allowances is to determine that returns and allowances are properly authorized and that sales are not overstated at$$ year$-$end and subsequently reversed by the issuance of returns.

D$.$

All of the above.