The Auditor Should Ordinarily Mail Confirmation Requests to All Banks

question 45

Multiple Choice

The auditor should ordinarily mail confirmation requests to all banks with which the client has conducted any business during the year,regardless of the year-end balance,since

• A) The confirmation form also seeks information about indebtedness to the bank.
• B) This procedure will detect kiting activities that would otherwise not be detected.
• C) The mailing of confirmation forms to all such banks is required by generally accepted auditing standards.
• D) This procedure relieves the auditor of any responsibility with respect to nondetection of forged checks.

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Definitions:

Small Intestine

A long, coiled section of the digestive tract where most of the digestion and absorption of nutrients occurs.

Stomach

A muscular organ in the gastrointestinal tract that breaks down food through mechanical movements and the secretion of acids and enzymes.

Blood Calcium

Refers to the level of calcium in the blood, which is crucial for various physiological functions including bone health, muscle contractions, and blood clotting.

Osteoblasts

Bone-forming cells that turn membrane into bone. They use excess blood calcium to build new bone.