Recording a Cash Receipt That Did Not Occur Violates the Existence

question 6

Multiple Choice

Recording a cash receipt that did not occur violates the existence transaction- related audit objective for the sales and collections cycle. Which balance- related audit objective for accounts receivable does it violate?

• A) Existence
• B) Realisable value
• C) Completeness
• D) Accuracy

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Definitions:

Check Form

A paper instrument that instructs a financial institution to pay a certain amount of money from a person's account to the designated recipient.

Purchase

The act of buying goods or services, resulting in a financial transaction.

Bill

A document indicating an amount owed for goods or services provided.

Pay Later

A payment arrangement that allows a buyer to purchase goods or services now and pay for them at a future date.