Which of the Following Pieces of Information Discovered by an Auditor

question 35

Multiple Choice

Which of the following pieces of information discovered by an auditor when performing substantive tests of account balances would most likely raise red flags about the possible existence of material fraudulent financial reporting?

• A)Paper copies of paid invoices and cancelled checks are microfiched and then destroyed.
• B)The controller requires that you schedule any audit inquiries for after lunch each day,not in the morning.
• C)The petty cash fund custodian never takes a vacation.
• D)The client's estimate of the allowance for doubtful accounts is lower than the auditor's independent evaluation of the allowance.

Recognize the effect of aesthetic experiences in relating a brand’s history and values.

Determine the importance of aligning brand strategies with cultural, time, and place codes to enhance brand positioning.

Understand the concept and application of pre-suppositional questions in solution-based counseling.

Grasp the purpose and implementation of the miracle question in envisioning a future without current problems.

---

Definitions:

Predetermined Overhead Rates

Rates used to allocate overhead costs to products or job orders, based on estimated costs and activity levels.

Direct Labor-Hours

The sum of hours contributed by workers directly participating in the creation of a product or the execution of a service.

Variable Manufacturing Overhead

Costs in manufacturing that vary directly with the level of production output, such as utilities and raw materials.

Fixed Manufacturing Overhead

Costs associated with manufacturing that remain constant regardless of the level of production, such as rent and salaries of managerial staff.