Your Client Is in the Process of Acquiring Another Company

question 20

Multiple Choice

Your client is in the process of acquiring another company. You have been requested to verify that cash for the company being acquired is properly stated. The audit technique that will yield the most persuasive evidence is:

• A)examination of the company's escrow account.
• B)interview with the company's treasurer and cash manager.
• C)preparation and review of standard bank confirmation inquiries.
• D)analytical computations comparing current cash in the bank with previous accounting periods.

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Definitions:

Age At Puberty

The period during which adolescents reach sexual maturity and become capable of reproduction.

Growth Spurt

A rapid period of physical growth, often occurring during puberty, where children significantly increase in height and weight.

Generations

Groups of people born and living around the same time, often considered to have shared experiences, values, and traits.

Grief Reactions

Emotional and psychological responses that occur after the loss of a loved one or the experience of significant loss, varying greatly among individuals.