An Internal Auditor for a Large Computer Company Suspects That

question 10

Multiple Choice

An internal auditor for a large computer company suspects that returned computer systems are being repackaged as new products and shipped to other customers before the defects have been repaired. Which of the following would be the most persuasive piece of evidence in support of the auditor's suspicions?

• A) Credit memos issued after year end for goods shipped before year end.
• B) Evidence of returned goods in the shipping and receiving area.
• C) An unusual number of customer complaints.
• D) The results of a complete physical inventory taken at year end.

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Definitions:

Muscle Spasms

Sudden, involuntary contractions or seizures of muscles that can cause pain or discomfort.

Medial And Lateral Epicondyle

Bony prominences found on the distal end of the humerus, important in the attachment of forearm muscles.

Annular Ligament

A circular band of connective tissue that stabilizes the joint, preventing dislocation.

Olecranon Bursa

A fluid-filled sac located at the tip of the elbow, providing a cushion between the skin and the olecranon process of the ulna bone.