Random Auditing for Fraud

question 39

Multiple Choice

Random auditing for fraud

• A) Creates an awareness of monitoring among employees
• B) Can be less-cost effective
• C) Is required by Sarbanes-Oxley
• D) All of the above

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Definitions:

Journalizing

The process of recording financial transactions in the accounting journal.

Journal

A basic accounting record where all the financial transactions of a business are initially recorded in chronological order before being posted to accounts in the ledger.

Liability Accounts

Accounts on a balance sheet representing what a company owes to others, including loans, mortgages, and accounts payable.

Debits

Entries on the left-hand side of an accounting ledger, indicating increases in assets or expenses or decreases in liabilities or equity.