Answered: Explain the relationships among the…

Explain the relationships among the initial assessed controlrisk, tests of controls and substantive tests of transactions for cash receipts, and the testsof details of cash balances.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 7EA: Record the following transactions in the cash receipts journal.

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Explain the relationships among the initial assessed control
risk, tests of controls and substantive tests of transactions for cash receipts, and the tests
of details of cash balances.

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Explain the relationships among the initial assessed controlrisk, tests of controls and substantive tests of transactions for cash disbursements, andthe tests of details of cash balances. Give one example in which the conclusions reachedabout internal controls in cash disbursements will affect the tests of cash balances
Which of the following is the best audit procedure for the detection of lapping? a. Comparison of postings of cash receipts to accounts with the details of cash deposits. b. Confirmation of the cash balance. c. Reconciliation of the cash account balances. d. Preparing a proof of cash.
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When auditing the cash account, the auditor traces the cash receipts, which are recorded on the cash receipt journal but not on the current period bank statement, to subsequent bank statements. Which of the following audit objectives are tested? A. Classification and cut-off B. Completeness and occurrence C. Occurrence and cut-off D. Completeness and cut-off E. Classification and occurrence
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