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:

Acini Cells

Acini cells are specialized cells within the exocrine glands of the pancreas, responsible for producing digestive enzymes that are secreted into the small intestine.

Absorption

The process by which substances are taken up and assimilated into the body, such as nutrients from the digestive tract into the bloodstream.

Mechanical Breakdown

The physical process of breaking food into smaller pieces, an essential part of digestion.

Chemical Digestion

The process of breaking down food in the gut into smaller components, using enzymes, so they can be absorbed into the body.