Audit Tests to Detect Lapping Involve Which of the Following

question 1

Multiple Choice

Audit tests to detect lapping involve which of the following?

• A) confirm accounts payable.
• B) compare details of cash payments journal entries with the details of corresponding daily deposit slips.
• C) use a bank cut-off statement.
• D) make a surprise cash count of currency and customers cheques on hand and oversee the banking of these amounts

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Definitions:

Creeping Bureaucracy

The gradual increase in bureaucratic layers within an organization, often leading to decreased efficiency and increased complexity.

TQM

Total Quality Management; a management approach focused on improving the quality of an organization's outputs, including goods and services, through continual feedback and refinement.

Incentive Pay Systems

Compensation methods designed to motivate employees by tying a portion of their earnings to specific performance metrics.

TQM

Total Quality Management; a business management strategy aimed at embedding awareness of quality in all organizational processes.