After Testing the Bank Reconciliation and Inspecting the Cutoff Bank

question 10

Multiple Choice

After testing the bank reconciliation and inspecting the cutoff bank statement received from the bank,the auditor has determined that there are two outstanding cheques from the list on the bank reconciliation that have still not cleared the bank.The auditor's next step should be to

• A)trace the details of the two cheques to the cash disbursements journal.
• B)trace the details of the two cheques to their associated expense accounts.
• C)reperform the calculations in the bank reconciliation.
• D)compare the total of the bank reconciliation to the bank confirmation.

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Definitions:

Political Office Seeker

An individual who campaigns for or aspires to hold a position in government.

Extensive Government Spending

A fiscal policy where the government spends significant resources on public services, programs, and projects to stimulate economic growth or achieve social objectives.

Externality Problems

Issues arising from the impact of one person's actions on the well-being of a bystander, which are not reflected in market prices.

Marginal Benefit

The extra pleasure or advantage obtained from acquiring or generating an additional unit of a product or service.