When assessing planned control risk for sales, the auditor is concerned about proper authorization at three key points. Discuss each of these three points.

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When assessing planned control risk for sales, the auditor is concerned about proper authorization at three key points. Discuss each of these three points.


Answer:
Credit should be properly authorized before a sale takes place; goods should be shipped only after proper authorization; and prices, base terms, freight, and discounts must be properly authorized.

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