Which of the Following Is the Primary Reason the Auditor

question 43

Multiple Choice

Which of the following is the primary reason the auditor obtains and reviews a cutoff bank statement?

• A)Verify the balance of cash per the bank's general ledger at the balance sheet date.
• B)Verify the reconciling items on the year-end bank reconciliation.
• C)Test for intentional lapping of bank transfers.
• D)Foot the cutoff bank statement for completeness.

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Definitions:

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.

Exchange for Land

A transaction in which a piece of land is acquired in exchange for something of value, rather than a direct financial purchase.

Adjusted Trial Balance

A trial balance that reflects all adjustments made in accounting records, used to prepare financial statements.

Financial Position

Describes an entity's financial health, assessed by examining its assets, liabilities, and equity at a specific point in time.