Which of the Following Statements Is not correct

question 30

Multiple Choice

Which of the following statements is not correct?

• A)Cash is important to the audit process because of its vulnerability to misappropriation,despite the fact that the balance at the balance sheet date may be immaterial.
• B)Payroll cash account balances kept on an imprest basis are more easily controlled than others not so kept.
• C)Confirmation of cash should only be performed as of the balance statement date because the auditor expresses an opinion as of that date.
• D)Reviewing interbank transfers is important to the auditor because of the possibility that the client may be engaged in kiting.

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Definitions:

Cognition

The act of understanding and learning through mental processes, experiences, and sensory engagement.

Concepts

Concepts are mental categories that group objects, events, and characteristics on the basis of common properties, enabling individuals to organize and simplify information in the world around them.

Prototypes

The original or most representative example of a category or concept, used as a benchmark to understand or identify subsequent variations or instances.

Algorithms

A set of rules or procedures for solving a problem in a finite number of steps, often used in computing and mathematical calculations.