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Which of the following procedures would an auditor most likely perform to test controls relating to management’s assertion about the completeness of cash receipts for cash sales at a retail outlet?
A. Inquire about employee’s access to recorded but undeposited cash
B. Compare cash balance in the GL with the bank confirmation request
C. Trace the deposits in the cash receipts journal to the cash balance in the GL
D. Observe consistency of the employee’s use of cash registers and tapesWhy is “D” the correct answer? If you are testing the completeness assertion, wouldn’t you trace the deposits from the cash receipts journal to the cash balance in the GL (option C)? The explanation says that this will not provide evidence regarding unrecorded liabilities.
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