The accounts receivable clerk destroys all invoices for sales made to members of her family and does not record the sale in the accounts receivable subsidiary ledger.Which procedure will not detect this fraud?
A)prenumber and sequence check all invoices
B)reconcile the accounts receivable control to the accounts receivable subsidiary ledger
C)prepare monthly customer statements
D)reconcile total sales on account to the debits in the accounts receivable subsidiary ledger

Question

Quizplus · Accepted Answer

Preparing monthly customer statements will not detect this fraud because the clerk is destroying the invoices and not recording the sales in the accounts receivable subsidiary ledger. Therefore, there will be no customer statements generated for these sales.

The Accounts Receivable Clerk Destroys All Invoices for Sales Made