Clara and David are working on the audit of Treadway Enterprises, and are meeting to discuss the client's internal controls; specifically controls over the cash disbursements process. Which of the following statements most accurately describes the controls that should be in place for this function? O Before payment of any cash disbursements, the appropriate authorizations should be received, and the correct dollar amounts paid. O Before the audit client proceeds with any cash disbursements, the firm should have appropriate entity-level controls in place to ensure transactional accuracy. O As part of the cash disbursement cycle, the auditor is likely to examine a sample of receivables controls to ensure their effectiveness. O None of these answer choices are correct. W

Clara and Dawid are working on the audit of Treadway Enterprises, and are meeting to discuss the client's internal controls: 5pecifically controls over the cash disbursements process. Which of the following statements most accurately describes the controls that should be in place for this function? Before payment of any cash disbursements, the appropriate authorizations should be received, and the correct dollar amounts paid. Before the audit dient proceeds with any cash disbursements, the firm should have appropriate entity-level controls in place to ensure transactional accuracy. As part of the cash disbursement cycle, the auditor is likely to ecamine a sample of feceivables controls to ensure their effectiveness. None of these answer choices are cortect