CPA-AUDITING practice question 20 of 35

Which of the following procedures would an auditor most likely perform to test controls relating to management's assertion about the completeness of cash receipts for cash sales at a retail outlet?

Full set: 1,026 questions

Answer options

A: Observe the consistency of the employees' use of cash registers and tapes. Correct answer

B: Inquire about employees' access to recorded but undeposited cash.

C: Trace the deposits in the cash receipts journal to the cash balance in the general ledger.

D: Compare the cash balance in the general ledger with the bank confirmation request.

Correct Answer:

A. Observe the consistency of the employees' use of cash registers and tapes.

Explanation

Choice "a" is correct. Observing the consistent use of cash registers and tapes by employees would provide evidence to the auditor regarding the controls over the completeness of cash receipts. Choices "b", "c", and "d" are incorrect. The completeness assertion relates to the recording of all transactions. Inquiries about access to recorded cash, tracing from the cash receipts journal, and testing the general ledger balance do not provide evidence regarding possible unrecorded transactions.

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