An Audit Department Has Received Anonymous Information That an Employee

question 306

Multiple Choice

An audit department has received anonymous information that an employee has allegedly been able to steal and cash checks sent to the organization by customers. What is the most efficient way for an auditor to determine how this type of fraud could occur and who might be the perpetrator?

• A) Confirm accounts receivable.
• B) Confirm accounts payable.
• C) Review the endorsements and banks of deposit on customers' canceled checks.
• D) Flowchart and analyze key controls in the cash receipts process.

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Definitions:

Biochemical Markers

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Alcoholism

A chronic disease characterized by uncontrolled drinking and preoccupation with alcohol, often leading to physical, mental, and social impairments.

Schizophrenia

Schizophrenia is a complex, chronic mental health disorder characterized by disturbances in thought, perception, emotions, and behavior.

Response Cost

Response cost is a behavioral intervention technique where a penalty is imposed for exhibiting undesired behaviors, leading to a decrease in those behaviors.