In Testing Controls Over Cash Disbursements, an Auditor Most Likely

question 8

Multiple Choice

In testing controls over cash disbursements, an auditor most likely would determine that the person who signs the checks also:

• A)reviews the monthly bank reconciliation.
• B)returns the checks to accounts payable.
• C)is denied access to the supporting documents.
• D)is responsible for mailing the checks.

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Definitions:

Specific Performance

A court-ordered action compelling a party to fulfill their obligations under a contract, typically used when simple monetary damages do not suffice.

Breach of Contract

The violation of any agreed-upon terms and conditions in a binding contract.

Art Collector

An individual or institution that accumulates and owns art pieces, often for personal enjoyment, investment, or exhibition.

Unemployed

The state of being without a paid job but available to work.