Your Client Is in the Process of Acquiring Another Company

question 20

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.

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Definitions:

Life Crises

Significant events or periods of change that disrupt an individual's normal life patterns, often requiring substantial adjustment.

Race

A social construct used to categorize humans into large and distinct populations based on physical appearances, ancestry, and cultural history.

Gender

Refers to the social and cultural distinctions associated with being male or female.

Social Class

A classification within society structured on economic and social standings.