To verify the client's cutoff of cash receipts, the auditors may be on hand to count the undeposited cash receipts on the last business day of the period

Accounting Dec 29, 2020

To verify the client's cutoff of cash receipts, the auditors may be on hand to count the undeposited cash receipts on the last business day of the period. True False

Expert Solution

To verify the client's cutoff of cash receipts, the auditors may either (1) be on hand to count the undeposited cash receipts on the last business day of the period, or (2) examine the cutoff bank statement to determine that deposits reported as being in transit at year-end were received by the bank on the following business day.

Ans: True

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