Which One of the Following Would the Auditor Consider to Be

question 101

Multiple Choice

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

• A)prepares the daily deposit.
• B)makes the daily deposit at a local bank.
• C)records the receipts to the customer files.
• D)endorses the cheques with the company endorsement stamp.

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Definitions:

Financially Distressed

A condition in which a company or individual cannot generate revenue or income, which results in challenges in paying its financial obligations.

Direct Cost

Expenses that can be directly tied to the production or sale of a specific product or service.

Bankruptcy

A legal process involving a person or business that is unable to repay outstanding debts, resulting in the selling off of assets to pay creditors.

Appraisers

Professionals who estimate the value of property, such as real estate or fine art, often used for tax, insurance, or sale purposes.