An Entity's Financial Statements Were Misstated Over a Period of Years

question 13

Multiple Choice

An entity's financial statements were misstated over a period of years due to large amounts of revenue being recorded in journal entries that involved debits and credits to an illogical combination of accounts. The auditor could most likely have been alerted to this fraud by:

• A)scanning the general journal for unusual entries.
• B)performing a revenue cutoff test at year-end.
• C)tracing a sample of journal entries to the general ledger.
• D)examining documentary evidence of sales returns and allowances recorded after year-end.

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Definitions:

Strong Leadership

The ability of an individual or group to guide or direct others towards achieving goals through a combination of influence, integrity, and inspiration.

Leader

An individual who guides or influences others within a group or organization towards achieving goals.

Good Follower

An individual who supports leaders in achieving their goals while maintaining integrity, initiative, and a sense of responsibility.

Style Approach

A leadership approach that argues there is a specific set of skills managers can learn to become effective leaders.