Question

For cash receipts, the occurrence transaction-related audit objective affects which of the following balance-related audit objectives?

1) existence
2) completeness
3) rights
4) detail tie-in

Answer 1

The occurrence transaction-related audit objective for cash receipts affects the completeness balance-related audit objective.

Step-by-step explanation:

The occurrence transaction-related audit objective for cash receipts affects the balance-related audit objective of completeness.

The completeness objective ensures that all cash receipts that should be recorded have been recorded. If the occurrence objective is not met, there may be a risk of unrecorded cash receipts, which would affect the completeness of the cash receipts balance.

For example, if a company receives cash from a customer, but fails to record the transaction, it would not be included in the cash receipts balance and the completeness objective would not be met.