Economics · Auditing - Audit Responses
An auditor is concerned about the risk that a charity's income may be understated and not fully recorded in the financial statements. Which of the following statements is NOT a valid auditor's response to address this completeness risk?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Observe the counting and recording of proceeds from collections to determine whether appropriate segregation of duties is in place.
- 2Review the internal controls relating to cash collected in buckets to determine whether they are sealed, sequentially numbered, and signed in and out by volunteers.
- 3Perform analytical procedures on the level of donations in specific shopping areas per volunteer.
- 4Obtain a breakdown of the income recorded from cash collected in buckets, and vouch a sample of entries back to individual volunteers to determine who collected the donations.✓
Correct answer
Obtain a breakdown of the income recorded from cash collected in buckets, and vouch a sample of entries back to individual volunteers to determine who collected the donations.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Auditing - Audit Responses MCQs →Want more practice questions on Auditing - Audit Responses?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Auditing - Audit Responses