Which of the Following Errors Would Be Least Likely to Be

question 83

Multiple Choice

Which of the following errors would be least likely to be discovered during the audit of the acquisitions and payments cycle?

• A) Duplicate payment of a vendor's invoice.
• B) Improper payments of officers' personal expenditures.
• C) Payment of interest to a related party for an amount in excess of the going rate.
• D) Payment for raw materials that were not received.

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Definitions:

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets, reflecting the total resources at its disposal.

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, indicating the tangible assets used in operations.

Receivables Turnover

A ratio that measures a company's efficiency in collecting its sales on credit over a period of time.