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:

Achievement-oriented Leadership

A leadership style focused on setting challenging goals, emphasizing excellence, and showing confidence in the abilities of team members.

Directive Leadership

A management style where leaders closely control employees' work, give specific directions, and expect followers to comply without question.

Supportive Leadership

A leadership style characterized by providing encouragement, resources, and assistance to subordinates, fostering a positive and motivating work environment.

Participative Leadership

A leadership style in which the leader includes team members in the decision-making process, valuing their input and fostering ownership.