The Audit Procedure Referred to as Proof of Cash Receipts

question 24

Multiple Choice

The audit procedure referred to as proof of cash receipts is particularly useful to test

• A) time lags in making deposits.
• B) whether all recorded cash receipts have been deposited in the bank.
• C) whether there are cash receipts that have not been recorded in the journals.
• D) the client's reconciliation between cash receipts and bank deposits.

---

Definitions:

Cognition

The intellectual activity that involves obtaining knowledge and insight via reasoning, undergoing experiences, and sensory perception.

Empiricism

A philosophy of knowledge that emphasizes the role of experience and evidence through the senses in the formation of ideas, over the notion of innate ideas or traditions.

Acquiring Knowledge

Acquiring knowledge involves the process of learning, understanding, and making sense of information, which can occur through experiences, education, or observation.

Clinical Psychologist

A professional specializing in diagnosing and treating mental, emotional, and behavioral disorders through therapy.