In an Effort to Satisfy the Completeness Objective, the Auditor

question 104

Multiple Choice

In an effort to satisfy the completeness objective, the auditor could perform which of the following test of details of balance procedures?

• A) Trace the book balance on the reconciliation to the general ledger.
• B) Trace outstanding checks to subsequent period bank statements.
• C) Perform a four-column proof of cash.
• D) Review financial statements to make sure that material savings accounts and certificates of deposit are disclosed separately.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Net Profit Margin

A financial metric that shows the percentage of a company's revenue that remains as net income after operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Management Efficiency

A measure of how effectively a business or organization's management team utilizes resources to achieve its goals.

Sales Dollar

A term representing the total dollar amount generated from sales transactions within a specific period.