up four weeks later.LO 6-66.29Which of the following combinations is a good way to conceal employee fraud but an ineffective means of perpetrating management (financial reporting) fraud? a.Overstating sales revenue and overstating customer accounts receivable balances.b.Overstating sales revenue and overstating bad debt expense.c.Understating interest expense and understating accrued interest payable.d.Omitting the disclosure information about related-party sales to the president's relatives at below-market prices. LO 6-56.30Allison Everhart, an employee in accounts payable, believes she can run a fictitious invoice through the accounts payable system and collect the money. She knows payments are subject to an audit. Which account would be the best place to hide the fraud? LO 6-26.31Page 255Which of these arrangements of duties could most likely lead to an embezzlement or theft? LO 6-46.32Which of the following would the auditor consider to be an incompatible operation if the cashier receives remittances? LO 6-56.33Which of the following is an effective audit procedure that an auditor might use to detect kiting between intercompany banks?
a.Review the composition of authenticated deposit slips.b.Review subsequent bank statements.c.Prepare a schedule of the bank transfers.d.Prepare a year-end bank reconciliation.
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- Summer '16
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