Commercial Pilot Licence (CPAER) – Canada · Question
An auditor is reviewing control activities related to sales. Which control is designed to prevent a potential fraud where sales revenue is recognized for goods not yet shipped?
Comparing shipping documents (proof of shipment) to sales invoices (revenue recognition) ensures that revenue is only recognized for goods that have actually be
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Question: An auditor is reviewing control activities related to sales. Which control is designed to prevent a potential fraud where sales revenue is recognized for goods not yet shipped?
Answer options:
- Matching sales invoices with customer purchase orders. ✅ Periodically comparing shipping documents to sales invoices.
- Segregation of duties between order entry and billing.
- Requiring management approval for all credit sales.
Correct answer: Periodically comparing shipping documents to sales invoices.
Explanation: Comparing shipping documents (proof of shipment) to sales invoices (revenue recognition) ensures that revenue is only recognized for goods that have actually been shipped, preventing premature or fictitious revenue recognition.
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Question explanations
- What is the minimum visibility required for a commercial VFR flight in Class D airspace at or below 3,000 feet
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- Scenario 1: A commercial pilot conducting an IFR flight in Canadian airspace must hold which of the following
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