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Identify four controls that can aid in preventing or detecting errors or fraud in recording cash receipts.

For each control discuss the tests of controls you would perform to assess its operating effectiveness.

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The solution provides discussion on four controls that can aid in preventing and detecting cash receipts fraud, and the tests of controls that would be performed for each control.

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1. Maintaining a log of all cash that comes into the business - by maintaining a separate log, either handwritten or electronically, it can be verified against accounts receivables, invoices, and other internal documentation to determine if it is a reliable and effective procedure, operating as a control. Separate logs of cash coming in and going out, which can be reviewed, are reliable tests of controls for cash.

2. Maintain a ...

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