Which of the Following Balance-Related Audit Objectives Typically Is Assessed

question 6

Multiple Choice

Which of the following balance-related audit objectives typically is assessed as having high inherent risk for cash?

• A)Existence
• B)Cutoff
• C)Detail tie-in
• D)Presentation and disclosure

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Definitions:

Allowance For Doubtful Accounts

An accounting concept referring to a reserve for accounts receivable that may not be collectible.

Aging

A method used in accounting to categorize accounts receivables based on the length of time an invoice has been outstanding to manage and track debts.

Uncollectible

Accounts receivable that are deemed to be uncollectable and thus are written off as an expense.

Receivables Accounting

The process of recording and managing the money owed to a business by its customers for goods or services offered.