Which of the following would be the best protection for a company that wishes to prevent the "lapping" of trade accounts receivable?
A) Separate duties so that the bookkeeper in charge of the general ledger has no access to incoming mail.
B) Separate duties so that no employee has access to both checks from customers and currency from daily cash receipts.
C) Have customers send payments directly to the company's depository bank.
D) Request that customer's payment checks be made payable to the company and addressed to the treasurer.
Correct Answer:
Verified
Q38: The auditor selects a sample of recorded
Q39: The most effective audit procedure for determining
Q40: An auditor should normally perform alternative procedures
Q41: Which of the following might be detected
Q42: A client has a separate sales group
Q44: Which of the following is the best
Q45: When auditing the revenue and collection cycle,
Q46: Which of the following accounts is not
Q47: In the audit of accounts receivable, the
Q48: Audit documentation often includes a client-prepared, aged
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents