For Most Audits, a Proper Cash Receipts Cutoff Is Less

question 68

Multiple Choice

For most audits, a proper cash receipts cutoff is less important than the sales cutoff because the improper cutoff of cash

• A) is detected and correct when cash is separately audited.
• B) is unlikely to have a material impact on the balance sheet or the income statement.
• C) affects items on the balance sheet but does not affect net income.
• D) rarely occurs given the control consciousness of most entities.

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Definitions:

Disease X

Refers to a hypothetical, unknown pathogen that could cause a future epidemic.

Cumulative Probability

The probability of an event happening up to a certain point in time or over multiple steps.

Metastatic Cancer

A type of cancer that has spread from the primary site of origin to different parts of the body, leading to secondary malignant growths at distant sites.

Diagnosis

The process of identifying a disease, condition, or injury from its signs and symptoms through the use of clinical assessment, laboratory tests, and imaging studies.