64.5k views
4 votes
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

1 Answer

2 votes

Final answer:

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.

User DannyRosenblatt
by
7.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.