An effective accounting system is designed to provide which of the following to help discover fraud?
a. An audit trail
b. Matching of expenses to revenues
c. Set of controls
d. Set of accounting procedures
a
FEEDBACK: a. Correct.
b. Incorrect. Accounting systems do match expenses with revenues, but this does not help discover fraud.
c. Incorrect. Controls are used to prevent fraud, not to discover fraud.
d. Incorrect. Accounting procedures help set up the accounting system, not vice versa.
You might also like to view...
Organisms produced as a result of mitosis exhibit a great deal of genetic variation.
Answer the following statement true (T) or false (F)
Besides presenting financial performance information to shareholders, the financial perspective provides information that can confirm the success of investments in learning and growth.
Answer the following statement true (T) or false (F)
The owners of a limited liability company enjoy limited liability.
Answer the following statement true (T) or false (F)
GAAP for nongovernmental not-for-profit organizations is set by the FASB and the AICPA.
Answer the following statement true (T) or false (F)