Question

An auditor confirms a representative number of open accounts receivable as of December 31 and investigates respondents' exceptions and comments. By this procedure, the auditor is most likely to learn of which of the following?
A. One of the cashiers has been covering a personal embezzlement by lapping.
B. One of the sales clerks has not been preparing charge slips for credit sales to family and friends.
C. One of the computer processing control clerks has been removing all sales invoices applicable to his account from the data file.
D. The credit manager has misappropriated remittances from customers whose accounts have been written off.

Answer 1

Answer:

A. One of the cashiers has been covering a personal embezzlement by lapping.

Explanation:

Embezzlement is characterized as the demonstration of theft or misappropriation of funds put in the trust of somebody. Generally, when an individual endows their property to someone else, yet the individual possessing the property unlawfully changes over the ownership rights with the goal to defraud the true owner, they are embezzling the individual who confided in them with that property.