I understand that the Sales department "approves" the sales returns and the receiving department receives the goods when returned.  Here is what i don't understand, Please read the question:

Sound internal control activities dictate that defective merchandise returned by customers be presendted initally to the:
A. Shipping Department Supervisor
B. Sales Clerk
C. Receiving Clerk
D. Accountrs receivable supervisor

I did answer "C" which is correct but i had basically narrowed it down to B or C and "guessed" c as "receving = returned".  Here is my question.  How can a sales clerk approve of a return without being the person to be presented with the returned goods first? How would they know what they are approving?

I failed Audit twice

This is just an extra step in return procedure to make sure that Receiving clerk will not approve items that are not sold by the company, and will not approve more then was sold.

that does help in that example.  I was just thinking of when you physically return something in a department store.  I don't think (i really don't know either) that the person that takes my stuff back is in sales but in receiving.  Therefore they are approving the return and receiving the goods at one time, making the discussion above moot. 

thanks for the help!