An Auditor Ordinarily Should Send a Standard Confirmation Request to All

question 50

Multiple Choice

An auditor ordinarily should send a standard confirmation request to all banks with which the entity has done business during the year under audit, regardless of the year-end balance, because this procedure:

• A)provides for confirmation regarding compensating balance arrangements.
• B)detects kiting activities that may not otherwise be discovered.
• C)seeks information about indebtedness to the bank.
• D)verifies securities held by the bank in safekeeping.

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Definitions:

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Small devices inserted into the ear canal to protect the ears from loud noises, water, or to block out sound while sleeping.

Contestant

An individual who takes part in a competition, aiming to win a prize or achieve recognition.

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Leaves that have shriveled, dried up, and lost their vitality, often due to lack of water, disease, or aging.

Past Tense

A verb tense used to describe actions or events that have happened in the past.