For Which of the Following Internal Controls Would an Auditor

question 41

Multiple Choice

For which of the following internal controls would an auditor be least likely to perform tests of internal controls closer to the "as of" date?

• A)Withdrawals from Federal Bank of more than $5 million must include a manager's signature.
• B)At the end of each day at Federal Bank, the total cash in the vault is reconciled with daily registers of deposits and withdrawals.
• C)Federal Bank has just started establishing trusts for its customers and it has only set up ten such trusts. Before making an investment for a trust, bank employees must verify that the investment is in accordance with stated investment policies.
• D)On an annual basis, Federal Bank management performs credit checks on its loan customers before determining the value of loans it will not be able to collect on.

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Definitions:

B Cell

A type of white blood cell that plays a vital role in the immune response by producing antibodies to fight off infections.

Foreign Protein

Proteins that are recognized by an organism's immune system as non-self, potentially triggering an immune response.

Memory B Cell

Forms during a primary immune response but enters a resting phase until a secondary immune response occurs.

Rapid Antibody Response

An immediate immune reaction by the body producing antibodies to defend against harmful pathogens.