The audit procedure referred to as proof of cash receipts is particularly useful to test
A. time lags in making deposits.
B. whether all recorded cash receipts have been deposited in the bank.
C. whether there are cash receipts that have not been recorded in the journals.
D. the client’s reconciliation between cash receipts and bank deposits.
Answer:B
The audit procedure referred to as proof of cash receipts is particularly useful to test
A. time lags in making deposits. B. whether all recorded cash receipts have been deposited in the bank. C. whether there are cash receipts that have not been recorded in the journals. D. the client’s reconciliation between cash receipts and bank deposits.