Which of the following can be used to test for commission schemes? Extract manual checks and summarize by salesperson and amount. Compare hours reported per timecard system to payroll system. Extract customer sale balances that exceed the customer credit limit. None of the above

Extract customer sale balances that exceed the customer credit limit.

Explanation:

Commission schemes are used by employees that collect compensation inform of commission to inflate their earnings.

Commissions are paid to employees for volume of work done. For example how many sales did a salesperson complete? Also payment is based on percentage of sales that employee is being paid.

To inflate commissions an employee can either falsify sales volume or increase rate of commission.

When customer sales balance exceeds his credit limit, it shows that sales volume was inflated, and this shows a commission scheme is being practices.

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