Which of the Following Procedures Does the Auditor Typically Perform

question 77

Multiple Choice

Which of the following procedures does the auditor typically perform when testing the existence of cash?

• A)Counting cash at the depository institution.
• B)Inquiry of management.
• C)Sending a standard bank confirmation.
• D)Tracing the bank reconciliation to the general ledger.

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Definitions:

Investment

Assets acquired or money spent in the hope of generating income or profit over time, including stocks, bonds, property, or equipment.

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Future Value

The worth of a short-term asset at a future date, calculated by projecting its growth at a certain rate over a period of time.

Present Value

The worth today of a future amount of money or sequence of cash inflows, based on a defined rate of return.