The Audit Objective of Determining That Cash in Bank, as Stated

question 49

Multiple Choice

The audit objective of determining that cash in bank, as stated on the reconciliation, foots correctly and agrees with the general ledger can be tested by which of the following procedures?

• A)Performing tests for kiting
• B)Receiving and testing a cutoff bank statement
• C)Footing the outstanding checks list and the list of deposits in transit
• D)Examining the minutes of the board of directors for restrictions on the use of cash

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Definitions:

Standard Deviation

A measure of the dispersion or variability in a set of values, indicating how much individual values deviate from the mean.

Fish Market

A marketplace where fish and seafood are traded, often involving auctioning and retail sales, catering to consumers and businesses.

Normally Distributed

Outlines a probability distribution characterized by symmetry around the mean, illustrating that data points in close proximity to the mean occur more often than data points far away from the mean.

Standard Deviation

A metric that assesses the spread or dispersion of values in a dataset, highlighting the differences of data points from the mean.