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:

Strange Situation

A procedure developed in psychology to assess patterns of attachment in young children to their caregivers.

Attachment

The emotional bond that forms between an individual and a caregiver, influencing patterns in relationships and emotional response.

Experimental Method

The only research method that can be used to identify cause–effect relationships between two or more conditions or variables.

Contact Comfort

The psychological and emotional comfort that an infant derives from being in physical contact with its caregiver, crucial for bonding and development.