How Will the Auditor Most Likely Utilize the Bank Reconciliation

question 65

Multiple Choice

How will the auditor most likely utilize the bank reconciliation as evidence in the audit of cash?

• A)The auditor sends the reconciliation to the bank for independent verification.
• B)The auditor performs the reconciliation for the client to record the proper cash balance.
• C)The auditor traces the book balance of the reconciliation to the cutoff bank statement.
• D)The auditor tests deposits in transit and outstanding items to other corroborating evidence.

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Definitions:

Stimulant

A substance that raises levels of physiological or nervous activity in the body.

Addictive

An addictive substance or behavior has the quality of causing someone to become dependent on it, often leading to physiological or psychological addiction.

Cocaine

A powerful stimulant drug derived from the coca plant, known for its psychoactive effects and potential for addiction.

Amphetamines

A class of stimulant drugs that can increase energy and concentration while decreasing appetite and fatigue.