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.

Analyze the legal consequences of contracts aiming to commit insurance fraud.

Assess the legal validity of contracts that involve unethical or illegal procurement of business advantages.

Identify the legal status of contracts involving payment for illicit activities.

Recognize the enforceability of contracts with minors and the protections afforded to them under contract law.