A high average collection period may indicate:     a. Management's willingness to quickly write-off questionable receivables     b. Customers are paying for purchases quickly     c. A strict collection policy     d. None of these

Why is it important for companies to analyze revenue and accounts receivable? How can these areas lend themselves to fraud when left with lack of segregation of duties, weak controls and recordkeeping delays?

TRUE or FALSE 3. All allowances to customers for returned or defective merchandise should be supported by serially numbered credit memo signed by an officer or responsible employee having no duties relating to handling cash or the maintenance of customers' ledgers. 4. The auditors should perform alternative auditing procedures on all negative confirmation requests that are not returned. 5. When it is "impossible" to confirm accounts receivable, the auditors can never issue an unqualified oinion, on the client's financial statements. 6. Inspection of notes receivable on hand should be performed concurrently with the count of cash and securities to prevent the concealment of a shortage by substitution of cash for misappropriated negotiable instruments, or vice versa. 7. A confirmation is considered documentary evidence secured from outside the organization and sent directly to the auditors. 8. The auditor needs the client's permission to send out "confirmations" 9. A customer's response…

Sales Discounts is a revenue account with a credit balance. True False Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.