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:

Sheep

Domesticated ruminant animals, bred for their wool, meat, and milk, known scientifically as Ovis aries.

Cattle

Domesticated bovine animals kept for their meat (beef and veal), milk, or hides, or used as work animals worldwide.

Intensive Agriculture

Farming practices that maximize productivity per unit of land through the use of technologies, irrigation, fertilizers, and pesticides.

Foraging

The act of searching for and exploiting food resources in the wild, typically by hunting, fishing, or gathering plant material.