Multiple Choice
Cash receipts from sales on account have been misappropriated. Which of the following acts would conceal this fraud and be least likely to be detected by an auditor?
A) understating the sales journal by not recording cash sales
B) overstating the accounts receivable control account by intentionally misstating prices charged for goods sold
C) overstating the accounts receivable subsidiary ledger by not recording payments made by customers
D) understating the cash receipts journal by purposely recording incorrect amounts
Correct Answer:
Verified
Correct Answer:
Verified
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Q115: Violations of the occurrence/existence objective for sales
Q116: Which of the following is not a
Q118: There should generally be correspondence in the
Q119: A proof of cash receipts is useful
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Q122: A proof of cash receipts may be