Which of the Following Is One of the Better Auditing

question 37

Multiple Choice

Which of the following is one of the better auditing techniques that might be used by an auditor to detect kiting between intercompany banks?

• A)Review the composition of authenticated deposit slips.
• B)Review subsequent bank statements received directly from the banks.
• C)Prepare a schedule of bank transfers.
• D)Prepare year-end bank reconciliations.

---

Definitions:

MRC

Marginal Resource Cost, the additional cost incurred by acquiring one more unit of a resource.

Complementary Resources

Different types of goods or services that, when used together, enhance each other's value and performance.

Market Value

The ongoing rate at which a commodity or service can be traded in the public market.

Productivity

The measurement of efficiency in which goods and services are produced, often assessed by the amount of output per unit of input.