The Major Difference Between Auditors and Examiners Who Detect Fraud

question 44

Multiple Choice

The major difference between auditors and examiners who detect fraud and those who don't is that most auditors merely:

• A) Match documents to see whether support exists and is adequate
• B) Find out whether the expenditures make sense
• C) Determine whether all aspects of the documentation are in order
• D) Check to see if documents are real or fraudulent

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Definitions:

Accounts Receivable Period

The average number of days it takes for a business to collect payments owed by its customers.

Credit Sales

Sales made by a business for which payment is received at a later date, extending credit to the buyer.

Cash Collections

are the payments received by a company from its customers in exchange for goods or services sold on credit.

Cumulative Surplus

The total amount of net income that a company retains over its life, after distributing dividends to shareholders.