Each of the Following Is an Example of an Abuse

question 18

Multiple Choice

Each of the following is an example of an abuse of a control environment EXCEPT:

• A)The HR department failed to check an applicant's background and hired someone who had committed fraud in the past.
• B)A manager instructs employees not to share passwords, and then shares her passwords with her immediate assistant.
• C)A company has established codes of conduct and conducts training meetings to teach employees to distinguish between acceptable and unacceptable behavior.Attendance is voluntary.
• D)The employees know who has responsibility for each business activity.Procedures to follow are in place.

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Definitions:

Adjustment Subsidiary Ledger

A detailed ledger that contains adjustments or modifications to accounts, used to support the primary accounting records.

Sales Returns And Allowances

Concessions granted to customers for returned goods or from granting reductions in the original sales price.

Sales Discounts

Reductions in the price sold given by a seller to a buyer, often used as an incentive for early payment or bulk purchases.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.