An Auditor Confirms a Representative Number of Open Accounts Receivable

question 3

Multiple Choice

An auditor confirms a representative number of open accounts receivable as of December 31 and investigates respondents' exceptions and comments. By this procedure, the auditor would be most likely to learn about which of the following?

• A)One of the cashiers has been covering a personal embezzlement by lapping.
• B)One of the sales clerks has not been preparing charge slips for credit sales to family and friends.
• C)One of the EDP control clerks has been removing all sales invoices applicable to his account from the data file.
• D)The credit manager has misappropriated remittances from customers whose accounts have been written off.

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Definitions:

You Statements

Phrases that directly address the listener or reader, potentially creating a sense of personalization or confrontation.

Passive-voice Verbs

Verbs that are used to indicate that the subject of the sentence is the recipient of the action rather than the performer.

Depersonalize

The process of removing personal items and touches from a space, making it more neutral for viewers or potential buyers.

Cushion

A protective layer or material used to prevent damage from impacts or to provide comfort.