Tests of cash balances focus on the account balance assertions of _______.

Question

Quizplus · Accepted Answer

Cash balance assertions primarily relate to completeness (ensuring all cash transactions are recorded), rights and obligations (confirming that the company has the right to the cash and there are no restrictions on its use), and valuation (checking the accuracy of the balance sheet presentation of cash and cash equivalents). Cutoff and existence assertions relate more to revenue and expense accounts, while going concern is a different type of audit consideration. Disclosure is also important, but not a primary account balance assertion for cash.

Tests of Cash Balances Focus on the Account Balance Assertions