To Gather Evidence Regarding the Balance Per Bank in a Bank

question 36

Multiple Choice

To gather evidence regarding the balance per bank in a bank reconciliation,an auditor could examine all of the following except:

• A)Cutoff bank statement.
• B)Year-end bank statement.
• C)Bank confirmation.
• D)General ledger.

---

Definitions:

Financial Risk

The possibility of losing money or the uncertainty in achieving the expected returns mainly due to market movements, interest rates, or credit failure.

ROE

Return on Equity is an indicator of a company's financial performance, indicating the amount of profit made from the shareholders' investments.

Financial Leverage

The action of using debt to magnify the expected return on an investment.

Operating Income

Income from a company's main business activities, excluding deductions for interest and taxes, showing the profitability from core operations.