Which Procedure Is an Auditor Most Likely to Use to Detect

question 68

Multiple Choice

Which procedure is an auditor most likely to use to detect a check outstanding at year-end that was not recorded as outstanding on the year-end bank reconciliation?

• A)Prepare a bank transfer schedule using the client's cash receipts and cash disbursements journal.
• B)Receive a cutoff statement directly from the client's bank.
• C)Prepare a four column bank reconciliation using the year-end bank statement.
• D)Confirm the year-end balance using the standard form to confirm account balance information with financial institutions.

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Definitions:

Risk of Exploitation

The possibility of taking unfair advantage of someone, especially in situations involving power imbalances.

Loss of Objectivity

A situation in which an individual's judgments are influenced by personal feelings, biases, or prejudices, leading to a lack of impartiality.

Bartering Psychotherapy

An arrangement where psychological counseling services are provided in exchange for goods or services from the client, instead of traditional monetary payment.

Unethical

Actions or behavior that violate professional standards, ethical codes, or moral principles.