To help improve the cash balance on the financial statements,the controller recorded several deposits from early January in the month of December.The general balance-related audit objective affected by this activity is
A)allocation timing.
B)accuracy.
C)classification.
D)existence.

Question

Quizplus · Accepted Answer

The general balance-related audit objective affected by recording several deposits from early January in the month of December is allocation timing. This is because the timing of recording these deposits in a different period may affect the cash balance reported on the financial statements. By recording the deposits in December instead of January, the cash balance will be overstated for December and understated for January, which can mislead users of financial statements. Therefore, auditors need to examine the timing of transactions and ensure that they are recorded in the correct period.

To Help Improve the Cash Balance on the Financial Statements,the