* Which of the following control activities are useful in reducing the risk of fraud?

1. All sales returns should be authorized by sales management

2. An independent count of goods returned should be recorded on a receiving report

3. Goods should be received only with a proper sales return authorization

4. The duties of authorizing sales returns and receiving goods should be combined

* In order to serve as a control activity useful in reducing the risk of fraud, the computer should match the credit memo information with the _________ (choose three).

authorization of sales return

sales invoice

receiving report

sales order

* By sending monthly statements to customers, most companies control three assertions related to receivables at historical cost. Which ones are those?

Completeness

Valuation

Existence

Classification