CRCT - Certified Revenue Control Technician Auditing and Reconciliation Questions and Answers

Question 1

During a monthly bank reconciliation, a revenue control technician notices that a deposit recorded in the company's cash book on the last day of the month does not appear on the bank statement.
Which of the following is the most likely cause of this discrepancy?

Accepted Answer

An outstanding deposit (deposit in transit)

Answer

Bank error in processing deposits

Answer

A duplicate entry in the cash book

Answer

An unrecorded bank service charge

Question 2

A revenue audit of a hotel's front desk operations reveals that the same employee who checks guests in and collects cash payments is also responsible for preparing the daily cash deposit and reconciling the daily sales report. This situation indicates a significant weakness in which of the following areas?

Accepted Answer

Segregation of duties

Answer

Documentation and record-keeping

Answer

Physical controls over assets

Answer

Independent verification

Question 3

Which of the following is the primary purpose of performing a sales cutoff test during a revenue audit?

Accepted Answer

To ensure that revenues are recorded in the correct accounting period.

Answer

To verify that all sales invoices were issued to valid customers.

Answer

To confirm that the prices charged to customers match the authorized price list.

Answer

To assess the adequacy of the allowance for doubtful accounts.

Question 4

A technician is reconciling the accounts receivable subsidiary ledger to the general ledger control account and finds the subsidiary ledger total is lower than the general ledger balance. Which of the following errors would most likely cause this specific discrepancy?

Accepted Answer

A sales invoice was recorded in the general ledger but was not posted to the customer's account in the subsidiary ledger.

Answer

A credit memo was posted to a customer's account in the subsidiary ledger but was not recorded in the general ledger.

Answer

A payment received from a customer was recorded in the general ledger but not posted to the customer's specific account.

Answer

An entry to write off an uncollectible account was recorded in both the subsidiary and general ledgers.

Question 5

When auditing cash receipts, the procedure of tracing a sample of recorded cash receipts from the cash receipts journal to the bank statement is performed to test which of the following assertions?

Accepted Answer

Existence/Occurrence

Answer

Valuation

Answer

Completeness

Answer

Rights and Obligations

Question 6

During a reconciliation of a company's revenue, a technician is comparing the total cash deposited per the bank statements against the total sales recorded in the point-of-sale (POS) system for the month. This reconciliation primarily serves as what type of control?

Accepted Answer

Detective control

Answer

Preventive control

Answer

Corrective control

Answer

Directive control

During a monthly bank reconciliation, a revenue control technician notices that a deposit recorded in the company's cash book on the last day of the month does not appear on the bank statement.Which of the following is the most likely cause of this discrepancy?

During a monthly bank reconciliation, a revenue control technician notices that a deposit recorded in the company's cash book on the last day of the month does not appear on the bank statement.
Which of the following is the most likely cause of this discrepancy?