The Auditor's Primary Concern in Performing Audit Procedures of the Write-Off

question 21

Multiple Choice

The auditor's primary concern in performing audit procedures of the write-off of uncollectible accounts relates to the risk that the client writes off customer accounts that have already been collected. The primary control for preventing this fraud is

• A) examining authorized credit memos.
• B) examining the uncollectible account authorization form.
• C) examining debit memos.
• D) examining the vouchers payable register.

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Definitions:

Competition Act

Legislation designed to promote fair business practices and protect consumers by preventing monopolies and promoting competition.

Bid-rigging

A form of fraud in which competitors agree in advance who will win a bidding process, thus undermining the competition.

Misleading Advertising

Advertising that deceives or is likely to deceive the consumer, often leading to an incorrect understanding or decision.

Competition Act

A law designed to preserve and promote competition and to protect consumers from anti-competitive practices by companies.