In Searching for Breakdowns of Internal Controls by Collusion and Fraud

question 50

Multiple Choice

In searching for breakdowns of internal controls by collusion and fraud, auditors:

• A) should check all journal entries made on holidays, weekends, and late at night.
• B) should discuss with employees any journal entry which has been made to reduce liabilities or increase owners' equity.
• C) should verify all journal entries and values associated with consolidations which resulted for work within spreadsheets.
• D) should obtain an understanding of the internal control processes regarding journal entries and other adjustments.

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Definitions:

Healed

The process or result of recovering from an injury, disease, or emotional distress.

Any Plane

An unspecified level or surface in space, which can be imagined as an infinitely extending flat area.

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A medical imaging technique used to visualize internal structures of the body in detail using magnetic fields and radio waves.

Constructed

Built or formed from parts; often refers to buildings, roads, or other man-made structures.