While auditing the financial statements of STU Company, you review a sample of sales invoices. You notice an invoice

where a bulk sale of computer hardware is classified under "Software Sales" in the ledger. To ensure the correct

classification of this sale, what audit procedure should you perform?

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A$.$ Verify the the nature of the sale to ensure that this sale was for computer hardware and not software and if

that is indeed the case recommend reclassifying the sale to "Hardware Sales" based on the nature of the

goods sold.

B$.$ Ignore the discrepancy since it's just one invoice and might not have a material impact on the financial:

statements.

C$.$ Advise the company to provide training to its accounting staff to prevent such classification errors.

D$.$ Accept the classification as it might be a bundled sale of software with hardware.