Which of the Following Deviations Would Probably Be of Most

question 34

Multiple Choice

Which of the following deviations would probably be of most concern to auditors?

• A)A deviation resulting from an employee's unintentional error.
• B)A deviation that represents an isolated and nonrecurring mistake.
• C)A deviation that represents an employee's careless attention to duties.
• D)A deviation that has no implications with regard to the effectiveness of other controls.

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Definitions:

Cash Receipts

Money received by a business during a given period, accounting for its cash inflow.

Cash Payments

Transactions that involve the outflow of cash from a company to settle dues such as expenses, debts, or purchases.

Debit Balance

A situation where the sum of debits in an account exceeds the sum of credits, often indicating the amount owed or expenses.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement.