A key indicator of fraud in the revenue cycle is the auditor's detection of which of the following?
A)customer collections that are over 90 days past due.
B)credit entries in customer accounts receivable for authorized write-offs.
C)recurring entries in the sales journal.
D)altered shipping documents and invoices.

Question

Quizplus · Accepted Answer

Altered shipping documents and invoices can be a sign of fraudulent activity in the revenue cycle, such as falsifying sales or hiding returns. Collections past due or credit entries for write-offs may indicate legitimate issues with customers, while recurring entries in the sales journal are a normal aspect of business operations.

A Key Indicator of Fraud in the Revenue Cycle Is