For Most Audits, a Proper Cash Receipts Cutoff Is Less

Multiple Choice

For most audits, a proper cash receipts cutoff is less important than the sales cutoff because the improper cutoff of cash

A) is detected and correct when cash is separately audited.
B) is unlikely to have a material impact on the balance sheet or the income statement.
C) affects items on the balance sheet but does not affect net income.
D) rarely occurs given the control consciousness of most entities.