Auditors Ordinarily Send a Standard Confirmation Request to All Banks

question 23

Multiple Choice

Auditors ordinarily send a standard confirmation request to all banks with which the client has done business during the year under audit,regardless of the year-end balances.A purpose of this procedure is to

• A)provide the data necessary to prepare a proof of cash.
• B)request that a cutoff bank statement and related checks be sent to the audit.
• C)detect questionable bank activities that may otherwise not be discovered.
• D)seek information about contingent liabilities and security agreements.

---

Definitions:

Disposable Income

The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.

Market Segmentation

The strategy of dividing a broad target market into subsets of consumers with common needs or characteristics, targeting each with a specific marketing mix.

Organizational Markets

Markets consisting of companies, governments, and institutions that purchase goods and services for operations, production, or resale purposes.

Psychographic Criteria

Factors that consider the lifestyle, attitudes, beliefs, social class, and other psychological attributes of consumers in market segmentation.