Lapping of Accounts Receivable Is Least Likely to Occur When

question 67

True/False

Lapping of accounts receivable is least likely to occur when there is an inadequate segregation of duties.

---

Definitions:

Contractual Breach

The failure to perform one or more terms or conditions of a contract without a legally valid excuse.

Reasonable Damages

Compensation amounts deemed fair and proportional to the loss or injury sustained, recognizable by the court.

Obtaining Different Accountant

The process of hiring a new accountant or accounting firm, usually to replace the current one due to various reasons such as seeking different expertise or dissatisfaction with services.

Private Securities Litigation Reform Act

A 1995 U.S. federal law designed to increase the legal standards required for filing securities fraud lawsuits, aiming to reduce frivolous litigation.