Question

For the cash receipts process, the control plan turnaround documents helps to achieve which of the following pairs of control goals?

a. ensure input validity and ensure input completeness
b. ensure efficient employment of resources and ensure input accuracy
c. ensure input completeness and ensure input accuracy
d. ensure security of resources and ensure input accuracy

Answer 1

Turnaround documents in the cash receipts process aim to ensure the accuracy and completeness of input, by facilitating matching of payments to invoices and confirming that all transactions are recorded.

Step-by-step explanation:

The control plan of turnaround documents in the cash receipts process primarily aims to ensure input completeness and ensure input accuracy. When documents such as remittance advices are used in payment processing, they are often sent back to customers as part of the bill.

Customers then return these documents with their payment, which provides a mechanism to confirm the payments received correspond to the specific invoices and that no transactions are omitted. This promotes not only the accuracy of input by making sure payments are properly matched to their respective accounts, but also helps in maintaining completeness by verifying that all expected receipts are accounted for.