6. Before year-end SG contacts you to discuss ways in which it could make its ba

Question

6. Before year-end SG contacts you to discuss ways in which it could make its balance sheet liquidity look better as of its year end of 12/31/2018. Which of the following window-dressing tactics would you find unacceptable and a potential reason for increased inherent risk for this audit engagement. Reduced accounts payable by paying its vendors via wire transfers made on 12/31/2018. Called customers and offered them a 10% discount, if they paid off the balance in their account before year-end. Delayed purchasing a new refrigerator until January of 2018. None of the above window dressing tactics are unacceptable or increase audit risk. A. B. C. D. Matters of Internal Control Risk Please indicate the four kinds (broad categories) of duties that are ideally segregated in an accounting department. 7. 8. 9. 10

Explanation / Answer

none of the above window dressing tactics are unacceptable or increase audit risk

Categories that require segregation of duties in accounting department are :

1. cash. 2. account receivables. 3. account payables. 4.Inventory

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