An Auditor Who Is Engaged to Examine the Financial Statements

question 12

Multiple Choice

An auditor who is engaged to examine the financial statements of a business enterprise will request a cutoff bank statement primarily in order to:

• A)Verify the cash balance reported on the bank confirmation inquiry form.
• B)Verify reconciling items on the client's bank reconciliation.
• C)Detect lapping.
• D)Detect kiting.

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Definitions:

Proerythroblast

Cell that matures into an erythrocyte.

Platelet Release Reaction

The process by which platelets release chemical compounds to promote blood clotting and attract more platelets to the site of an injury.

ADP

Adenosine diphosphate, a molecule involved in energy transfer within cells, that is converted to ATP during cellular respiration.

Thromboxanes

Lipid compounds that play a role in the blood clotting process by causing platelets to clump and blood vessels to constrict.