The Sales Department Bookkeeper Has Been Crediting House?account Sales to Her

question 3

Multiple Choice

The sales department bookkeeper has been crediting house?account sales to her brother-in?law, an outside salesman.Commissions are paid on outside sales but not on house-account sales.This might have been prevented by requiring that:

• A)Sales order forms be prenumbered and accounted for by the sales department bookkeeper
• B)Sales commission statements be supported by sales order forms and approved by the sales manager
• C)Aggregate sales entries be prepared by the general accounting department
• D)Disbursement vouchers for sales commissions be reviewed by the internal audit department and checked to sales commission statements
• In each one of the following four questions (questions 50?53), you are given a well?recognized procedure of internal control.You are to identify the irregularity that will be discovered or prevented by each procedure.

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Definitions:

Frequent Pauses

Short breaks or interruptions occurring repeatedly within a process or activity, often to enhance performance or safety.

Tracheal Suctioning

A procedure to clear the trachea (windpipe) of secretions or blockages by inserting a catheter through the mouth, nose, or tracheostomy.

Instill Normal Saline

The process of introducing a saline solution into a body cavity or tissue for therapeutic purposes.

Oral Hygiene

The practice of keeping the mouth and teeth clean to prevent dental problems and bad breath.