The Most Likely Result of Ineffective Internal Control Policies and Procedures

Multiple Choice

The most likely result of ineffective internal control policies and procedures in the revenue cycle is that:

A) Irregularities in recording transactions in the subsidiary accounts could result in a delay in goods shipped.
B) Omission of shipping documents could go undetected, causing an understatement of inventory.
C) Final authorization of credit memos by personnel in the sales department could permit an employee defalcation scheme.
D) Fictitious transactions could be recorded, causing an understatement of revenues and overstatement of receivables.