Julia's Cookies Has Identified the Following Revenue Recognition Fraud Control

Multiple Choice

Julia's Cookies has identified the following revenue recognition fraud control activity risk: "Shipping more products to retailers or distributors than they are capable of selling near the end of a reporting period may result in an inflated statement of revenue and channel stuffing fraud." Choose from the list of control activities below one of the appropriate control activities for this risk statement.

A) Review returns, credits, and adjustments to determine timing and revenue recognition.
B) Match the sales invoice quantities to the shipping information and the prices to the sales contract or master price list.
C) Avoid setting unrealistic bonus targets to remove incentive for fraud and consider other forms of compensation and the right balance between revenue targets and incentivizing employees.
D) Review accounts receivable periodically including write-offs and aging.