An Auditor Confirms a Representative Number of Open Accounts Receivable

question 65

Multiple Choice

An auditor confirms a representative number of open accounts receivable as of December 31 and investigates exceptions and comments noted by respondents.By this procedure,the auditor is most likely to learn of which of the following?

• A)One of the cashiers has been covering a personal embezzlement by lapping.
• B)One of the sales clerks has not been preparing charge slips for credit sales to family and friends.
• C)One of the EDP control clerks has been removing all sales invoices applicable to his account from the data file.
• D)The credit manager has misappropriated remittances from customers whose accounts have been written off.

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Definitions:

Sternum

A bone that forms the front and middle portion of the rib cage; also called the breastbone or breast plate.

AV Node

The atrioventricular node, a part of the heart's electrical system that acts as a gatekeeper, slowing the electrical current before it passes from the atria to the ventricles.

SA Node

The sinoatrial node, also known as the heart's natural pacemaker, is a cluster of cells situated in the right atrium of the heart that regulates the heart's rhythm by generating electrical impulses.

Bundle of His

A collection of heart muscle cells specialized for electrical conduction that transmits the electrical impulses from the atrioventricular node to the ventricles of the heart.