An Entity's Financial Statements Were Misstated Over a Period of Years

question 47

Multiple Choice

An entity's financial statements were misstated over a period of years due to large amounts of revenue being recorded in journal entries that involved debits and credits to an illogical combination of accounts.The auditor could most likely have been alerted to this fraud by

• A) Scanning the general journal for unusual entries.
• B) Performing a revenue cutoff test at year-end.
• C) Tracing a sample of journal entries to the general ledger.
• D) Examining documentary evidence of sales returns and allowances recorded after year-end.

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Definitions:

Sexist

A person who discriminates against another based on gender, often holding stereotypical beliefs about gender roles.

Patriarchal Society

A societal structure where males predominantly possess the main authority, leading in political governance, ethical leadership, societal advantages, and ownership of assets.

Abusive Husbands

Male spouses who engage in behavior that is damaging or harmful towards their partners, often manifesting as physical, emotional, or psychological abuse.

Drug Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or other negative outcomes.