When Comparing an Initial Audit with a Subsequent Year Audit

question 33

Multiple Choice

When comparing an initial audit with a subsequent year audit for a particular client,the scope of audit procedures for which of the following accounts would be expected to decrease the most?

• A)Accounts receivable.
• B)Cash.
• C)Marketable securities.
• D)Property,plant,and equipment.

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Definitions:

Check Register

A place for recording important information about each transaction.

Cash Balance

The amount of cash on hand or in a bank account that is immediately available for use.

Deposit

A deposit is a sum of money placed in an account or given to a party as security for the fulfillment of a contract, often refundable after certain conditions are met.

Check Stub

A check stub is the part of a check that is kept as a record by the issuer, detailing the amount, date, and payee of the check.