In an Effort to Satisfy the Completeness Objective,the Auditor Could

question 48

Multiple Choice

In an effort to satisfy the completeness objective,the auditor could perform which of the following test of details of balance procedures?

• A)Trace the book balance on the reconciliation to the general ledger.
• B)Trace outstanding cheques to subsequent period bank statements.
• C)Obtain and test a cutoff bank statement.
• D)Review financial statements to make sure that material savings accounts and certificates of deposit are disclosed separately.

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Definitions:

Easement

A right to cross or otherwise use someone else's land for a specified purpose.

Leasehold

A possessory interest, but not an ownership interest, transferred by contract (lease).

Driveway

A private road leading from a public way to a building on the adjoining land, primarily used for vehicle access.

Profit

The right to go onto someone’s land and take part of the land or a product of it away from the land.