The Audit Procedure Referred to as Proof of Cash Receipts

question 98

Multiple Choice

The audit procedure referred to as proof of cash receipts is 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) all of the above

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Definitions:

Outsourcing Vendor

A third-party company or individual that provides goods or services to another entity under contract, often to cut costs or focus on core business activities.

Negotiating

The process of discussing and reaching a mutual agreement between parties with differing needs or perspectives.

Termination Clause

A provision within a contract that specifies the conditions under which the contract may be ended by either party.

Current Service Levels

The existing extent and quality of services provided by an organization or team, prior to any improvements or changes.