By Tracing Receiving Reports Issued at and Before Year-End to Vendors

question 57

Multiple Choice

By tracing receiving reports issued at and before year-end to vendors' invoices and making sure they are included in accounts payable, the auditor is testing for:

• A) kiting.
• B) unrecorded obligations.
• C) theft of merchandise by employees.
• D) lapping.

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Definitions:

Monotremes

Egg-laying mammals, such as the platypus and echidna, representing a unique branch of the mammalian tree.

Parthenogenesis

The development of an unfertilized egg into an adult organism; common among honeybees, wasps, and certain other arthropods.

Lay Eggs

The act of depositing eggs by a female organism, as a means of reproduction.

Feathers

Keratinous structures unique to birds, used for flight, insulation, and display purposes.