Which of the Following Statements Is not correct

question 30

Multiple Choice

Which of the following statements is not correct?

• A)Cash is important to the audit process because of its vulnerability to misappropriation,despite the fact that the balance at the balance sheet date may be immaterial.
• B)Payroll cash account balances kept on an imprest basis are more easily controlled than others not so kept.
• C)Confirmation of cash should only be performed as of the balance statement date because the auditor expresses an opinion as of that date.
• D)Reviewing interbank transfers is important to the auditor because of the possibility that the client may be engaged in kiting.

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Definitions:

Rightward Shift

In economic graphs, a movement to the right of a curve, indicating an increase in supply or demand depending on the context.

Home-Delivered Pizza

Pizza that is made and delivered directly to a customer's home by a restaurant or pizza delivery service.

Population

The entire group of individuals or instances about whom we seek to make conclusions in statistical analysis or the number of inhabitants in a particular region or place.

Increase in Demand

A situation where there is a rise in the quantity of a product or service that consumers are willing and able to purchase at existing prices.