The Reason for Testing the Client's Bank Reconciliation Is to Verify

question 137

Multiple Choice

The reason for testing the client's bank reconciliation is to verify whether the client's recorded bank balance is the same amount as the actual cash in bank, except for deposits in transit, checks outstanding, and other reconciling items. The information needed to complete the tests of the reconciliation is provided by the

• A) client's records and ledgers for the year under audit.
• B) cutoff bank statement.
• C) client's records and ledgers for the subsequent year.
• D) canceled checks for the year under audit.

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Definitions:

Independent Samples

Two or more groups of data that are collected from separate populations and are not related or paired in any way.

Contact Lenses

Thin lenses worn directly on the eye to correct vision or for cosmetic purposes.

Significant Difference

A statistically significant difference indicates that the observed difference between two datasets is not likely due to random chance at a specified significance level.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.