Which One of the Following Would the Auditor Consider to Be

question 67

Multiple Choice

Which one of the following would the auditor consider to be an incompatible operation if the cashier receives remittances from the mailroom?

• A) The cashier makes the daily deposit at a local bank.
• B) The cashier prepares the daily deposit.
• C) The cashier posts the receipts to the accounts receivable subsidiary ledger cards.
• D) The cashier endorses the cheques.

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Definitions:

Expand

To increase the scale, scope, or size of something, often used in the context of business growth or economic expansion.

Increasing-cost Industry

An industry in which production costs increase as output expands, often due to scarce resources or rising input prices.

Long-run Equilibrium

The condition in which all factors of production can be adjusted, leading to a situation where no firm in the industry wishes to change its output.

Market Price

The current value at which an asset or service can be bought or sold in an open market.