Recording a cash receipt that did not occur violates the existence transaction- related audit objective for the sales and collections cycle. Which balance- related audit objective for accounts receivable does it violate?
A) Existence
B) Realisable value
C) Completeness
D) Accuracy

Question

Quizplus · Accepted Answer

Completeness is the balance-related audit objective for accounts receivable that is violated when a cash receipt that did not occur is recorded. This is because the recording of the cash receipt would result in an overstatement of accounts receivable, as the balance would include an amount that does not actually exist.

Recording a Cash Receipt That Did Not Occur Violates the Existence