Which of the Following Procedures Can Test the Audit Objective

question 71

Multiple Choice

Which of the following procedures can test the audit objective of determining that cash in bank, as stated on the reconciliation, foots correctly and agrees with the general ledger?

• A) Examining the minutes of the board of directors for restrictions on the use of cash
• B) Performing tests for kiting
• C) Adding the unpresented cheques list and the list of deposits in transit
• D) Receiving and testing a cutoff bank statement

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Definitions:

Productivity Factor

An indicator of the efficiency with which inputs are converted into outputs in the production process.

Production Technique

The methods and processes used by businesses to manufacture goods or provide services.

Short-run Cost Function

A representation of the total cost associated with production, considering some inputs are fixed.

Average Total Cost

The total cost of production divided by the number of units produced, including both fixed and variable costs.