Which of the Following Procedures Can Test the Audit Objective

question 90

Multiple Choice

Which of the following procedures can test the audit objective of determining that cash in bank, as stated on the reconciliation, foots correctly and agrees with the general ledger?

• A) adding the unpresented cheques list and the list of deposits in transit
• B) examining the minutes of the board of directors for restrictions on the use of cash
• C) performing tests for kiting
• D) receiving and testing a cutoff bank statement

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Definitions:

Gentrification

The process of renovating and improving a district so that it conforms to middle-class taste, often leading to the displacement of lower-income families.

Urban Blight

The deterioration and decay of buildings and areas in a city, often due to neglect, abandonment, or economic downturn.

Central Business Districts

Areas within a city where commercial, financial, and business activities are concentrated.

Inflexibility

The lack of adaptability or the inability to change or be changed easily in response to different circumstances.