Assume That an Auditor Notes a Large Series of Checks

question 10

Multiple Choice

Assume that an auditor notes a large series of checks that does not clear the bank for an unusually long time after period end.Which of the following would the auditor likely suspect from this observation?

• A)Vendors are eager to get their payments.
• B)The reconciliation is accurate.
• C)Cash does not exist.
• D)The presence of held checks at period-end.

---

Definitions:

Substance Abuse

The detrimental or dangerous consumption of mind-altering substances, such as alcohol and illegal drugs.

Financial Security

Financial security relates to having enough financial resources to support a comfortable standard of living, now and in the future, along with the peace of mind that comes from this assurance.

Abused Children

Individuals under the age of 18 who have experienced physical, emotional, sexual, or neglectful harm by a caregiver or another individual.

Threat-Detecting Areas

Regions in the brain, such as the amygdala, responsible for identifying and responding to potential dangers.