Which of the Following Procedures Does the Auditor Typically Perform

question 77

Multiple Choice

Which of the following procedures does the auditor typically perform when testing the existence of cash?

• A)Counting cash at the depository institution.
• B)Inquiry of management.
• C)Sending a standard bank confirmation.
• D)Tracing the bank reconciliation to the general ledger.

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Definitions:

Return

The gain or loss on an investment over a specified period, usually expressed as a percentage.

Sales

The revenue a company earns from selling goods or services over a period.

Unusual Item

A gain or loss in financial statements that is infrequent or uncommon in occurrence.

Corporate Income Tax

Taxes imposed on the income or profit of corporations and other business entities by government authorities.