If the Auditor Does Not Obtain a Cutoff Statement Directly

question 29

Multiple Choice

If the auditor does not obtain a cutoff statement directly from the bank for testing,an alternative procedure that the auditor can use is to

• A)account for a continuity of cheques that covers the year end.
• B)reconcile cash paid to the cash disbursements journal for the last month of the year.
• C)reconcile cash received to the cash receipts journal for the last month of the year.
• D)prove the bank statement for the period after the year end.

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Definitions:

Otoscope

A medical device used to look into the ears.

Ophthalmoscope

An instrument used by doctors to examine the interior of the eye, including the retina and optic nerve.

Stethoscope

A medical instrument used for listening to the sounds generated within the body, particularly the heart and lungs.

Hyperventilating

Breathing at an abnormally rapid rate, which can lead to decreased carbon dioxide levels in the blood, sometimes causing lightheadedness or fainting.