Which of the Following Situations Shows Kelcie,a Forensic Accountant,exercising Professional

question 43

Multiple Choice

Which of the following situations shows Kelcie,a forensic accountant,exercising professional skepticism?

• A) Kelcie argues that the immediate previous year's records serve as a better basis for the investigation than the earlier years.
• B) Kelcie believes that the reputation of the external auditor is an indicator of the reliability of the audit report.
• C) Kelcie believes in the phrase "guilty, until proved otherwise" and does not presume innocence until she has reasonable doubt.
• D) Kelcie verifies the reports given by the internal auditor against available evidence before using it in her reports.

---

Definitions:

Bank Reconciliation

The process of verifying the balance of a company's bank accounts with their financial records, identifying any discrepancies that may exist.

Purpose

Purpose refers to the reason for which something is done or created or for which something exists.

General Journal Entry

A record in accounting that notes the debit and credit transactions affecting financial statements.

Cash Register

A machine used in retail for calculating and recording sales transactions and storing money.