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

question 124

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) proving the bank reconciliation as to additions and subtractions, including all reconciling items
• D) examining the minutes of the board of directors for restrictions on the use of cash

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Definitions:

ATP

Adenosine triphosphate, a high-energy molecule that stores and transfers energy within cells, crucial for many cellular processes.

NADPH

Nicotinamide adenine dinucleotide phosphate, a coenzyme involved in redox reactions, playing a crucial role in photosynthesis and anabolic pathways.

Photosynthesis

The process by which green plants, algae, and some bacteria convert light energy into chemical energy stored in glucose, using carbon dioxide and releasing oxygen.

Chemical Energy

A form of potential energy stored in chemical bonds between atoms and molecules, which can be released during chemical reactions.