Which of the Following Represents a Typical Substantive Audit Procedure

question 43

Multiple Choice

Which of the following represents a typical substantive audit procedure for cash balances?

• A) Verify material deposits-in-transit to subsequent statements.
• B) Review cash confirms received by the client from the bank.
• C) Foot cutoff bank statements provided by the financial institutions.
• D) Perform kiting techniques to transfer cash between two client accounts.

---

Definitions:

Cost Formula

An equation used to calculate the total cost of production, which may include fixed costs, variable costs, or a combination of both.

Machine-Hours

Machine-hours measure the amount of time a piece of machinery is in operation and is often used as a basis for allocating manufacturing overhead.

Maintenance Cost

Expenses incurred in keeping property, equipment, or machinery in efficient operating condition, including both preventive and corrective measures.

Relevant Range

The span of activity levels within which the assumptions made about cost behavior in cost-volume-profit analysis remain valid.