Auditors Ordinarily Send a Standard Bank Confirmation to All Banks

question 22

Multiple Choice

Auditors ordinarily send a standard bank confirmation to all banks with which the client has done business during the year under audit, regardless of whether the client has closed its account.One reason for doing so is to

• A)Provide the data necessary to prepare a summary of cash.
• B)Request that a cut off bank statement and cancelled cheques be sent to the auditor.
• C)Detect lapping activities that might otherwise not be discovered.
• D)Obtain information about unrecorded liabilities and security agreements.

---

Definitions:

Consumer Behavior

The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.

Reference Groups

Groups that individuals refer to when making purchasing decisions or when evaluating their personal qualities.

Dissociative Reference Group

A group that an individual does not want to associate with, and therefore takes steps to distance themselves from in their purchasing decisions or behaviors.

Family Life Cycle

A series of stages through which a family progresses over time, influencing buying behaviors and marketing strategies.