Which Procedure Is an Auditor Most Likely to Use to Detect

question 68

Multiple Choice

Which procedure is an auditor most likely to use to detect a check outstanding at year-end that was not recorded as outstanding on the year-end bank reconciliation?

• A)Prepare a bank transfer schedule using the client's cash receipts and cash disbursements journal.
• B)Receive a cutoff statement directly from the client's bank.
• C)Prepare a four column bank reconciliation using the year-end bank statement.
• D)Confirm the year-end balance using the standard form to confirm account balance information with financial institutions.

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Definitions:

Temperate Grasslands

Expansive areas of grassy fields found in regions with moderate temperatures throughout the year, often used for grazing and agriculture.

Human Agriculture

The practice of cultivating soil, producing crops, and raising livestock for human use and consumption.

Tornadoes

Violently rotating columns of air touching the ground, usually attached to the base of a thunderstorm, known for their potential to cause significant destruction.

Boreal Forest

A dense forest found in high Northern latitudes, primarily consisting of conifers and known for its cold, harsh climates.