Assume That an Auditor Notes a Large Series of Checks

question 10

Multiple Choice

Assume that an auditor notes a large series of checks that does not clear the bank for an unusually long time after period end.Which of the following would the auditor likely suspect from this observation?

• A)Vendors are eager to get their payments.
• B)The reconciliation is accurate.
• C)Cash does not exist.
• D)The presence of held checks at period-end.

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Definitions:

Federal Reporter

A set of books that publish the official court decisions of the United States federal courts.

Published Opinions

Legal decisions or conclusions by courts that are officially released and recorded, often used as precedents in future cases.

Persuasive Authority

References or citations that a court may consider in making its decision but is not obliged to follow because they come from a different jurisdiction or are secondary sources.

Sixth Circuit

A federal judicial circuit in the United States that encompasses parts of the Midwest, including Kentucky, Michigan, Ohio, and Tennessee.