An Auditor Confirms a Representative Number of Open Accounts Receivable

question 65

Multiple Choice

An auditor confirms a representative number of open accounts receivable as of December 31 and investigates exceptions and comments noted by respondents.By this procedure,the auditor is most likely to learn of which of the following?

• A)One of the cashiers has been covering a personal embezzlement by lapping.
• B)One of the sales clerks has not been preparing charge slips for credit sales to family and friends.
• C)One of the EDP control clerks has been removing all sales invoices applicable to his account from the data file.
• D)The credit manager has misappropriated remittances from customers whose accounts have been written off.

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Definitions:

Maryland Act

Legislation specific to the state of Maryland, often requiring more context to define its purpose or scope, as many acts could carry this name.

Anthony Johnson

An African American who became one of the first African property owners and one of the first to have his right to own a slave legally recognized in the British American colonies.

Olaudah Equiano

An African writer and abolitionist who gained freedom from slavery and wrote an autobiography detailing his experiences, significantly influencing the abolitionist movement in Britain.