An Auditor Should Trace Interbank Transfers for the Last Part

question 54

Multiple Choice

An auditor should trace interbank transfers for the last part of the audit period and first part of the subsequent period to detect whether

• A) The cash receipts journal was held open for a few days after the year-end.
• B) The last checks recorded before the year end were actually mailed by the year-end.
• C) Cash balances were overstated because of kiting.
• D) Any unusual payments to or receipts from related parties occurred.

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Definitions:

Blood Vessels

Blood vessels are the part of the circulatory system that transports blood throughout the human body, including arteries, veins, and capillaries.

Metabolism

The set of life-sustaining chemical reactions in organisms that allow them to grow, reproduce, maintain their structures, and respond to their environments.

Acclimatization

The process by which an organism adjusts to a gradual change in its environment, allowing it to maintain performance across a range of environmental conditions.

Seasonal Changes

Variations in environmental conditions, such as temperature and day length, that occur at regular intervals throughout the year.