One Purpose of Sending a Standard Confirmation Request to Financial

question 44

Multiple Choice

One purpose of sending a standard confirmation request to financial institutions with which the entity has done business during the year is to:

• A)detect kiting activities that may otherwise not be discovered.
• B)corroborate information regarding deposit and loan balances.
• C)provide the data necessary to prepare a proof of cash.
• D)request information about contingent liabilities and secured transactions.

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Definitions:

Spotlight Question

A probing question designed to uncover deep insights, typically used to focus attention on specific issues during discussions or interviews.

Implied Warranty

A legal guarantee that a product will meet a minimum level of quality and functionality, assumed in a sale even if not expressly stated.

Express Warranty

An explicit guarantee by a seller regarding the condition, quality, or performance of the product being sold.

Consumer Good

Any tangible commodity produced and subsequently purchased to satisfy the current wants and perceived needs of the buyer.