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.

Question

Quizplus · Accepted Answer

Observing the endorsement of incoming checks is useful to test the completeness objective for cash receipts as it provides evidence that all incoming checks have been received and deposited by the company.

Which of the Following Test of Controls Is Useful to Test