Which of the following would most likely be detected by the auditors year-end sales cutoff procedures?

a. Transactions with related parties that were not adequately disclosed.

b. December shipments that were incorrectly recorded as January sales.

c. Overstatements in the recorded balance for the allowance for sales returns.

d. Understatements in the recorded balance for the allowance for uncollectibles.

e. Accounts receivable that have been pledged as collateral for notes payable.

Which of the following is not specifically associated with control environment as presented in AICPA Professional Standards?

a. Having appropriate human resource policies and procedures in place.

b. Individuals are held accountable for their assigned responsibilities.

c. Those charged with governance provide appropriate oversight of senior management.

d. Having an appropriate segregation of duties to avoid incompatible functions.

e. The organization has a commitment to integrity and high ethical standards.