Which of the Following Test of Controls Is Useful to Test

question 37

Multiple Choice

Which of the following test of controls is useful to test the completeness objective for cash receipts?

• A) Compare shipping documents with sales records.
• B) Observe endorsement of incoming checks.
• C) Examine evidence that the receivable master file is reconciled to the general ledger.
• D) Observe if the client reconciles the bank account.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.