Under SAS 99,financial Statement Auditors Are Required to Make Inquires

question 44

Multiple Choice

Under SAS 99,financial statement auditors are required to make inquires of all but which of the following individuals or groups about possible fraudulent activity or red flags.

• A)Management
• B)Audit committee members
• C)Internal audit personnel
• D)Shareholders

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Definitions:

General Ledger

The general ledger is the primary accounting record of a company that uses double-entry bookkeeping, summarizing all transactions into accounts for financial statements.

Allowance for Doubtful Accounts

a contra-asset account that estimates the portion of accounts receivable that may not be collectible.

Trade Receivables

Trade receivables are amounts owed to a business by its customers resulting from the sale of goods or services on credit.

Sales Transactions

These are dealings or agreements carried out between two parties, where goods or services are exchanged for money or other considerations.