Which of the Following Is One of the Better Auditing

question 37

Multiple Choice

Which of the following is one of the better auditing techniques that might be used by an auditor to detect kiting between intercompany banks?

• A)Review the composition of authenticated deposit slips.
• B)Review subsequent bank statements received directly from the banks.
• C)Prepare a schedule of bank transfers.
• D)Prepare year-end bank reconciliations.

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Definitions:

Investor

An individual or entity that commits capital with the expectation of receiving financial returns, often through the purchase of stocks, bonds, or other investment vehicles.

Deferred Tax Liability

A tax obligation that a company owes but has not yet paid, arising from temporary differences between accounting and tax treatments of income and expenses.

Post-Acquisition

Refers to events, transactions, and changes in financial status that occur after one company acquires control of another company.

Asset Revaluation

The process of increasing or decreasing the carrying value of an asset to reflect its current fair market value.