In Addition to Confirming Bank Balances of Your Audit Client

question 1

Multiple Choice

In addition to confirming bank balances of your audit client, a bank confirmation would normally contain

• A) the client's bank loans with due date, interest rate, and collateral requested.
• B) the client's credit history as regards to paying back loans.
• C) the client's managements bank account information.
• D) the client's business prospects.

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Definitions:

Lower Limit

The smallest value that a given set, statistical sample, or data category can take on or be assigned.

Upper Limit

The maximum level or value that can be reached or is allowable in a given context.

Supply and Demand

Fundamental economic model describing how prices vary as a result of a balance between product availability and consumer demand.

Price Floor

A government or group-imposed price control that sets the lowest legal price a commodity can be sold at.