Which of the Following Is a Correct Statement Regarding the Misappropriation

question 59

Multiple Choice

Which of the following is a correct statement regarding the misappropriation of receipts involving revenue?

• A) One of the easiest frauds to detect is when a sale is not recorded and the cash from the sale is stolen.
• B) If a customer's payment is stolen, regular billing of unpaid accounts can uncover the fraud unless the fraud perpetrator does something to hide the theft.
• C) Misappropriation of cash receipts is generally as material as fraudulent reporting of revenues.
• D) Analytical procedures can detect relatively small thefts of sales and related cash receipts.

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Definitions:

First-line Managers

Managers at the lowest level of an organization's hierarchy, directly supervising staff and overseeing day-to-day operations.

Productivity Efficiency

A metric that measures how effectively resources, such as labor and materials, are being used to produce goods and services.

Effective

Effective describes the degree to which something achieves its intended outcome, result, or success.

Chief Financial Officer

The executive responsible for managing the financial actions of a company, including financial planning, management of financial risks, and financial reporting.