An Auditor Confirms a Representative Number of Open Accounts Receivable

question 74

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 of 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 IT 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:

Zygote

The initial cell formed when a sperm cell unites with an egg cell, which then undergoes cell division to develop into an embryo.

Uterine Wall

The muscular layer of the uterus, which expands during pregnancy to accommodate a growing fetus and contracts during childbirth.

Prenatal Development

The process of growth and development within the womb from conception to birth.

Fluid Intelligence

The capacity for deductive reasoning and the ability to use new information to solve problems; it is relatively independent of education and tends to decline in old age.