In reference to the year-end cut off of sales transactions which of the following is false?
In testing year end cut off the auditors should compare the sales recorded for several days before and after the balance sheet date with source documents.
Shipments made in the first week of January should be recorded as sales in January.
Shipments made in the first week of January should be recorded as part of the cost of goods sold in December.
Segregation of duties is an important internal control to prevent client abuses in this area.