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:

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on managing processes that convert inputs into outputs.

Enterprise

A business or company, especially one that's large and complex, engaged in commercial or professional activities.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Marketing Function

The role within a company involved with identifying and meeting the needs and wants of customers through product development, pricing, promotion, and distribution.