An Auditor Reconciles the Total of the Accounts Receivable Subsidiary

question 48

Multiple Choice

An auditor reconciles the total of the accounts receivable subsidiary ledger to the general ledger control account, as at 30 June 2012. By this procedure, the auditor would be most likely to learn of which of the following?

• A) An April cheque from a customer was posted in error to the account of another customer with a similar name.
• B) An April invoice was improperly computed.
• C) An account balance is past due and should be written off.
• D) An opening balance in a subsidiary ledger account was improperly carried forward from the previous accounting period.

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Definitions:

Virulent

Describes a pathogen or microbe that is highly infectious, dangerous, or capable of causing severe disease.

Transmission

The act or process of transferring something from one place, person, or thing to another, often used in the context of diseases, information, or genetic traits.

Parasites/pathogens

Organisms that live on or in a host organism and cause harm or disease to the host.

Endogenous Retroviruses

Viral sequences in the genome that result from ancient viral infections in the lineage of a species, now transmitted vertically from parent to offspring.