The given statement "At which point in an ordinary sales transaction of a wholesaling business would a lack of specific authorization be of least concern to the auditor" is True.
A lack of specific authorization would be of least concern to the auditor at the point where the sale is made for cash. This is because:
Cash payments are immediate and verifiable: When a customer pays for the goods in cash, the transaction is completed and the money is instantly received. This eliminates the risk of credit default or non-payment, which are major concerns in wholesale transactions.
Cash transactions have minimal documentation: When a sale is made for cash, there is less documentation involved compared to credit sales. This minimizes the risk of errors or fraud in the authorization process.
Cash transactions are less prone to manipulation: Since cash is directly received and accounted for, there is less opportunity for manipulation of records or concealment of missing inventory.
Therefore, due to the immediacy, verifiability, and reduced complexity of cash transactions, a lack of specific authorization is of least concern to the auditor in this scenario.