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:

Hip-hop

A cultural movement that originated in the 1970s in the Bronx, New York, encompassing music, dance, art, and fashion.

Institutional Authority

Refers to the power and influence possessed by organizations within structured and established institutions, such as governments, religious bodies, or educational entities, that enable them to enforce norms and rules.

Deferential

Showing respectful submission or yielding to the judgment, opinion, or will of another person.

Postmodernism

A broad movement in late 20th-century thought and culture characterized by skepticism towards grand narratives and ideologies, embracing relativism, and celebrating diversity.