One of the Commonly Used Substantive Tests for Cash Balances

question 45

Essay

One of the commonly used substantive tests for cash balances is to confirm the bank balance directly with the bank through a Bank Confirmation Audit Request. What is the difference between the requirements of GS 016.and accepted practice in the industry? Name five of the categories of information requested on a standard Bank Confirmation Audit Request.

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Definitions:

Registration

The act of recording information or names officially, often for legal, official, or security purposes.

Snowmobile

A motorized vehicle designed for travel over snow, usually on runners with a treaded rear allowing for propulsion across snow-covered terrains.

Floating Charge

A debt security issued by a corporation in which assets of the corporation, such as stock-in-trade, are pledged as security. Until such time as default occurs, the corporation is free to dispose of the assets.

Creditor

An entity or person to whom money is owed by a debtor.