You Are Part of the Audit Team That Is Auditing

question 71

Essay

You are part of the audit team that is auditing Hillsburg Hardware Co.and you have been assigned to the sales and collection business process.You are testing whether the cash received has been recorded in the cash receipts journal.(completeness objective /assertion).List two tests of controls and at least one test of transactions that you would do to satisfy yourself regarding the completeness assertion.

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Definitions:

Burden of Proof

The obligation to prove one's assertion or claims in a legal dispute or court of law.

Criminal Guilt

The determination that an individual has committed a crime as proven in a court of law, following a legal process.

Civil Trial

A legal proceeding in which disputes between parties are resolved by a judge or a jury, not involving criminal charges.

Entrapment

A practice whereby a law enforcement agent induces a person to commit a criminal offense that the person would have otherwise been unlikely to commit.