An Auditor Confirms a Representative Number of Open Accounts Receivable

question 89

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 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:

Cognitive Tempo

A person's processing speed and habitual pace of thinking, potentially influencing learning and attention.