B is corrent because at the point of selling the goods for cash, decisions on matters such as appropriate discounts will have already been made. The fact that cash is being received eliminates any credit problem considerations. Therefore, the lack of specific authorization will not be of great concern to the auditor in this situation.
A is incorrect because specific authorization will be needed for the granting of credit and, therefore, is of concern to the auditor.
C is incorrect because specific authorization will be needed for shipment of goods and, thus, is of concern to the auditor.
D is incorrect because specific authorization is required for determination of discounts and will be of concern to the auditor.
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