The Internal Control Which Requires That 'Cheques Are Prenumbered and Accounted

question 9

Multiple Choice

The internal control which requires that 'cheques are prenumbered and accounted for' satisfies the transaction- related audit objective for cash payments of:

• A) posting and summarisation.
• B) completeness.
• C) accuracy.
• D) existence.

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Definitions:

Smoothing Constant

A parameter used in exponential smoothing techniques to weight the importance of historical data, controlling the rate at which past data influences forecasts.

Sales Forecast

An estimate of the amount of sales a company expects to achieve over a certain period of time, based on historical data, market analysis, and other factors.

Root Mean Square Error

It is a measure used to assess the differences between values predicted by a model or an estimator and the observed values.

Sales Details

Specific information related to the sales transactions of a business, including quantities sold, prices, dates, and customer information.