Which Procedure Is an Auditor Most Likely to Use to Detect

question 68

Multiple Choice

Which procedure is an auditor most likely to use to detect a check outstanding at year-end that was not recorded as outstanding on the year-end bank reconciliation?

• A)Prepare a bank transfer schedule using the client's cash receipts and cash disbursements journal.
• B)Receive a cutoff statement directly from the client's bank.
• C)Prepare a four column bank reconciliation using the year-end bank statement.
• D)Confirm the year-end balance using the standard form to confirm account balance information with financial institutions.

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Definitions:

Electron

A negatively charged subatomic particle present in every atom that primarily facilitates the flow of electricity in solid materials.

Boron

A metalloid element with the symbol B, essential for plant growth and used in fiberglass and borosilicate glass.

Protons

Positively charged subatomic particles found in the nucleus of an atom, contributing to the atom's mass and charge.

Ca

The elemental symbol for Calcium, a soft gray alkaline earth metal with atomic number 20.