In Verifying the Balance of Cash in Midtown Bank, Ann

question 33

Essay

In verifying the balance of Cash in Midtown Bank, Ann Moore began by footing the bank reconciliation prepared by the client. Next, she verified outstanding checks by tracing them to the check register. In addition, she compared the ending bank balance with the balance shown on the bank confirmation obtained directly from the bank. Ann also reviewed the bank statement for any unusual charges or credits. Finally, Ann asked the treasurer if there had been a proper cutoff of bank transactions at the balance sheet date.
REQUIRED: Identify the types of corroborating information obtained by Ann Moore and indicate the action that produced the evidence.

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Definitions:

Income Elasticity

A measure of how the demand for a good or service changes with a change in the consumer's income.

Bagels

A type of bread product originating from the Jewish communities in Poland, known for their dense, chewy texture and hole-in-the-center shape.

Demand Function

An equation that relates the quantity of a good demanded by consumers to its price and other factors like income and prices of related goods.

Income Elasticity

Measures how the demand for a good or service changes relative to a change in consumers' income levels.