A Key Indicator of Fraud in the Revenue Cycle Is

question 105

Multiple Choice

A key indicator of fraud in the revenue cycle is the auditor's detection of which of the following?

• A)Customer collections that are over 90 days past due.
• B)Credit entries in customer accounts receivable for authorized write-offs.
• C)Recurring entries in the sales journal.
• D)Altered shipping documents and invoices.

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Definitions:

Legitimate Power

The authority or power that is recognized as lawful and is derived from a position of responsibility within a hierarchical organization.

Coercive Power

A form of authority that relies on the fear of negative results from failing to comply, often involving threats or punitive measures.

Network Interactions

The dynamic exchanges and communications that occur within a network of individuals or organizations.

Exchanges

Platforms or scenarios where goods, services, or ideas are traded between parties.