Auditors Ordinarily Send an Electronic Confirmation Request to All Banks

question 33

Multiple Choice

Auditors ordinarily send an electronic confirmation request to all banks with which the client has done business during the year under audit, regardless of the year-end balances. A purpose of this procedure is to:

• A)provide the data necessary to prepare a proof of cash.
• B)request that a cutoff bank statement and related checks be sent to the auditor.
• C)detect questionable bank activities that may otherwise not be discovered.
• D)seek information about contingent liabilities and security agreements.

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Definitions:

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Characterized by rapid and unexpected changes, often used to describe substances that easily vaporize or situations that can quickly become unstable.

Jealousy

An emotional state arising from the fear of losing something or someone of value, especially in a relationship, to a real or imagined rival.

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The quality of being trusted and believed in, often assessed in the context of individuals or information sources.

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