For Which of the Following Internal Controls Would an Auditor

question 56

Multiple Choice

For which of the following internal controls would an auditor be least likely to perform tests of internal controls closer to the "as of" date?

• A) Withdrawals from Federal Bank of more than $5 million must include a manager's signature.
• B) At the end of each day at Federal Bank, the total cash in the vault is reconciled with daily registers of deposits and withdrawals.
• C) Federal Bank has just started establishing trusts for its customers and it has only set up ten. Before making an investment for a trust, bank employees must verify that the investment is in accordance with stated investment policies.
• D) On an annual basis, Federal Bank management performs credit checks on its loan customers before determining the value of loans it will not be able to collect on.

---

Definitions:

Maladaptive

Behaviors or thoughts that instead of helping, end up being harmful or obstructing one’s ability to adjust healthily to particular situations or environments.

Homicide

The act of one human killing another, whether lawfully or unlawfully.

Olfactory System

The sensory system responsible for the sense of smell, involving the detection and processing of odor molecules by the olfactory receptors and brain.

Neurons

Specialized cells in the nervous system that transmit information through electrical and chemical signals.