Which of the Following Most Likely Would Be the Result

question 15

Multiple Choice

Which of the following most likely would be the result of ineffective internal control policies and procedures in the revenue process?

• A)Final authorization of credit memos by personnel in the Sales Department could permit an employee defalcation scheme.
• B)Fictitious transactions could be recorded, causing an understatement of revenues and an overstatement of receivables.
• C)Irregularities in recording transactions in the subsidiary accounts could result in a delay in goods shipped.
• D)Omission of shipping documents could go undetected, causing an understatement of inventory.

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Definitions:

Federal Laws

Laws created by the federal government of a country, applicable nationwide and overriding state laws where conflict exists.

Mail and Wire Fraud

Federal crimes involving the use of postal or electronic communications to carry out fraudulent schemes.

Evidence

Information or materials presented to prove or disprove alleged facts in a legal proceeding.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, etc., whether real or imagined.