Auditors Are Especially Concerned with Three Aspects of Internal Control

question 40

Multiple Choice

Auditors are especially concerned with three aspects of internal control for the sales and collection cycle.Which of the following is not one of their major concerns?

• A)Controls over cutoff
• B)Controls that prevent or detect embezzlements
• C)Controls over sales discounts
• D)Controls related to the allowance for uncollectible accounts

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Definitions:

Cognitive Miser

A theory suggesting that humans, to save mental energy, prefer to solve problems in the simplest way possible rather than in a more sophisticated but effort-intensive way.

Mentally Lazy

A reluctance or lack of desire to engage in cognitive tasks or challenges, preferring minimal mental effort or thought.

Process-oriented

Focused on the methods and procedures of accomplishing tasks or understanding phenomena, rather than solely on outcomes.

Problem Solvers

Individuals or groups that identify, analyze, and find solutions to complex or challenging situations.