The Audit Objective of Determining That Cash in Bank, as Stated

question 49

Multiple Choice

The audit objective of determining that cash in bank, as stated on the reconciliation, foots correctly and agrees with the general ledger can be tested by which of the following procedures?

• A)Performing tests for kiting
• B)Receiving and testing a cutoff bank statement
• C)Footing the outstanding checks list and the list of deposits in transit
• D)Examining the minutes of the board of directors for restrictions on the use of cash

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Definitions:

Import Substitution

An economic policy aimed at replacing foreign imports with domestic production to promote local industries.

Foreign Competition

Competition that domestic companies face from companies located in other countries, influencing markets, pricing, and innovation.

Trade Restrictions

Measures such as tariffs, quotas, and embargoes that countries impose to control the amount of trade across their borders.

Import-Substitution Policy

An economic strategy aimed at reducing dependence on imported goods by promoting domestic production of similar products.