A Client's Primary Accounting Methodologies and Significant Accounting Policies ________

question 25

Multiple Choice

A client's primary accounting methodologies and significant accounting policies ________.

• A)should be stored in the current file
• B)should be stored in the permanent file
• C)should be re-examined by the auditor once the audit report has been published
• D)is confidential, and should not be shared with the auditor

---

Definitions:

Book Balance

The balance of an account according to the accounting records, not necessarily reflecting the available cash or cleared funds.

Bank Balance

The total amount of funds available in a bank account at a given moment, including all deposits and subtracting any withdrawals.

Outstanding Checks

Checks that have been written and recorded in the accounting books but have not yet been cashed or cleared by the bank.

Month-end Bank Statement

A document provided by a bank summarizing the account’s activity and balances over the last month, used for reconciling the bank account.