An Audit Procedure Which Compares the Name, Amount, and Dates

question 79

Multiple Choice

An audit procedure which compares the name, amount, and dates shown on remittance advices with cash receipts journal entries and with related duplicate deposit slips would be effective in detecting:

• A) sales without proper credit authorisation.
• B) illicit write-offs of customers as uncollectible accounts.
• C) kiting.
• D) lapping.

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Definitions:

KMnO4

Potassium permanganate, a chemical compound with strong oxidizing properties, used in a variety of applications including as a disinfectant and in organic synthesis.

Ethylbenzene

An organic compound that is a clear, highly flammable liquid with a sweet smell, primarily used in the production of styrene, which is a precursor to polystyrene, a common plastic.

CO

Carbon monoxide, a colorless, odorless gas that is toxic to humans and animals at high concentrations, produced by incomplete combustion of carbon-containing materials.

1° Alcohol

An alcohol where the hydroxyl (-OH) group is attached to a carbon atom that is itself bonded to only one other carbon atom, known as primary alcohol.