Certain Types of Misstatements That Affect Cash May Be Detected

Multiple Choice

Certain types of misstatements that affect cash may be detected in the audit of tests of controls.Which of the following misstatements would be detected in the audit of the sales and collection cycle?

A) a defalcation of cash hidden by an unauthorized write-off of a bad debt
B) accidental duplicate payment of a vendor's invoice
C) payment for raw materials that were not received
D) payment to an employee at an incorrect wage rate