Which of the Following Would Be Used by the Auditor

question 35

Multiple Choice

Which of the following would be used by the auditor to address kiting?

• A) Cut-off bank reconciliations.
• B) Bank transfer schedules.
• C) Bank confirmations-account balances.
• D) Bank confirmations-loan guarantees.

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Definitions:

Recency Effect

The tendency to better remember information that is encountered last in a series.

Salience Effect

Refers to the tendency of individuals to focus on items or information that stand out more noticeably or are more significant to them.

Depth of Processing

A theory suggesting the depth (shallow to deep) of mental processing affects memory recall; deeper processing leads to better recall.

Retroactive Interference

The phenomenon where newly learned information interferes with the recall of information learned previously.