In an Effort to Satisfy the Completeness Objective, the Auditor

question 104

Multiple Choice

In an effort to satisfy the completeness objective, the auditor could perform which of the following test of details of balance procedures?

• A) Trace the book balance on the reconciliation to the general ledger.
• B) Trace outstanding checks to subsequent period bank statements.
• C) Perform a four-column proof of cash.
• D) Review financial statements to make sure that material savings accounts and certificates of deposit are disclosed separately.

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Definitions:

Managers

Individuals in an organization responsible for directing and overseeing the work of a group of people.

Incentives

Benefits, rewards, or compensation offered to motivate specific actions or behaviors by individuals or organizations.

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities markets and protecting investors.

Loan Covenant

A condition in a loan agreement that the borrower must comply with, which can include financial requirements or operational actions.