Which of the Following Represents a Typical Substantive Audit Procedure

question 43

Multiple Choice

Which of the following represents a typical substantive audit procedure for cash balances?

• A) Verify material deposits-in-transit to subsequent statements.
• B) Review cash confirms received by the client from the bank.
• C) Foot cutoff bank statements provided by the financial institutions.
• D) Perform kiting techniques to transfer cash between two client accounts.

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Definitions:

Delegation

The process of assigning responsibility and authority to subordinates to complete a task, while maintaining accountability for the outcome.

Matrix Structures

An organizational structure that combines two or more lines of reporting, typically function and product, to more effectively manage complexity.

Divisional

A divisional structure in an organization is a form of internal organization where divisions are created to operate semi-autonomously, each focusing on a particular product line, market sector, or geographical area.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups.