{"id":32730,"date":"2024-04-15T09:06:00","date_gmt":"2024-04-15T09:06:00","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=32730"},"modified":"2024-04-15T09:06:00","modified_gmt":"2024-04-15T09:06:00","slug":"when-counting-cash-on-hand-the-auditor-should","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/when-counting-cash-on-hand-the-auditor-should\/","title":{"rendered":"When counting cash on hand the auditor should:"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Ensure presence of somebody from management&#8221; option2=&#8221;Obtain a receipt from custodian as to its return&#8221; option3=&#8221;Ensure postage and revenue stamps are not counted in physical count&#8221; option4=&#8221;Temporary advances to employees are counted to calculate balance of cash in hand&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: A. Ensure presence of somebody from management.<\/p>\n<p>The auditor should ensure the presence of somebody from management when counting cash on hand to:<\/p>\n<ul>\n<li>Minimize the risk of fraud.<\/li>\n<li>Ensure that the count is conducted in a proper and orderly manner.<\/li>\n<li>Obtain confirmation that the cash counted is the same as the cash recorded in the accounting records.<\/li>\n<\/ul>\n<p>Option B is incorrect because the auditor does not need to obtain a receipt from the custodian as to its return. The auditor can verify the return of cash by counting it and comparing it to the amount recorded in the accounting records.<\/p>\n<p>Option C is incorrect because postage and revenue stamps are not considered cash. They are considered to be supplies and should be recorded as such in the accounting records.<\/p>\n<p>Option D is incorrect because temporary advances to employees are not considered cash. They are considered to be receivables and should be recorded as such in the accounting records.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Ensure presence of somebody from management&#8221; option2=&#8221;Obtain a receipt from custodian as to its return&#8221; option3=&#8221;Ensure postage and revenue stamps are not counted in physical count&#8221; option4=&#8221;Temporary advances to employees are counted to calculate balance of cash in hand&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[698],"tags":[],"class_list":["post-32730","post","type-post","status-publish","format-standard","hentry","category-auditing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When counting cash on hand the auditor should:<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/when-counting-cash-on-hand-the-auditor-should\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"When counting cash on hand the auditor should:\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Ensure presence of somebody from management&#8221; 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