Your Client Is in the Process of Acquiring Another Company

question 24

Multiple Choice

Your client is in the process of acquiring another company.You have been requested to verify that cash for the company being acquired is properly stated.The audit technique that will yield the most persuasive evidence is

• A) Examination of the company's escrow account.
• B) Interview with the company's treasurer and cash manager.
• C) Preparation and review of standard bank confirmation inquiries.
• D) Analytical computations comparing current cash in the bank with previous accounting periods.

---

Definitions:

Technological Advances

Technological advances refer to the progress and innovations in technology that enhance efficiency, productivity, and the quality of life.

Food Production

Food production involves the processes and methods used to transform raw ingredients into prepared food items for consumption.

Population Growth

The increase in the number of individuals in a population, often measured as the change in total population over time.

Six Million

A figure often associated with the number of Jewish victims during the Holocaust in World War II.