When Certain Customers Made Cash Payments to Reduce Their Accounts

question 106

Multiple Choice

When certain customers made cash payments to reduce their accounts receivable,the bookkeeper embezzled the cash and wrote off the accounts as uncollectible.Which control procedure would most likely prevent this irregularity?

• A)segregation of duties
• B)accounting records
• C)accounting system
• D)access controls

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Definitions:

Independent Verification

The process of having a third party check and confirm the accuracy or validity of findings or data to ensure objectivity and reliability.

Hypothesis Testing

A method in statistics used to determine whether there is enough evidence to reject a null hypothesis about a population parameter.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action in an organization or individual.

Empirical Reasoning

A way of understanding the world through observation, experimentation, and evidence rather than through theoretical or abstract principles.