The Audit Team Typically Reviews Journal Entries in the Receivables

question 52

True/False

The audit team typically reviews journal entries in the receivables ledger for unusual entries that may be indicators of fraudulent activity.

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Definitions:

General Journal

A comprehensive ledger that records all the day-to-day financial transactions of a business.

Accounts Payable

Liabilities of a business that represent amounts owed to creditors for goods and services purchased on credit.

Accounting Information System

A system designed to collect, store, and process financial and accounting data, and produce informational reports for decision making.

Cost Effectiveness

Evaluation of how efficiently resources are used to achieve a goal, usually expressed in cost per unit of outcome.