The Primary Purpose of Sending a Standard Confirmation Request to Financial

question 64

Multiple Choice

The primary 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.