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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