Which of the following test of controls is useful to test the completeness objective for cash receipts?
A. Compare shipping documents with sales records.
B. Observe endorsement of incoming checks.
C. Examine evidence that the receivable master file is reconciled to the general ledger.
D. Observe if the client reconciles the bank account.
Answer:B
Which of the following test of controls is useful to test the completeness objective for cash receipts?
A. Compare shipping documents with sales records. B. Observe endorsement of incoming checks. C. Examine evidence that the receivable master file is reconciled to the general ledger. D. Observe if the client reconciles the bank account.