How Does the Auditor Typically Test for the Existence of Cash

question 67

Multiple Choice

How does the auditor typically test for the existence of cash?

• A)counting cash at the depository institution.
• B)inquiry of management.
• C)standard bank confirmation.
• D)tracing the bank reconciliation to the general ledger.

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Definitions:

Behavioral Prediction

The degree to which a judgment or measurement can predict the behavior of the person in question.

Internal Consistency

A measure of how well the items on a test measure the same construct or concept, indicating the reliability of the scale.

Predictive Validity

The degree to which one measure can be used to predict another.

Reputation

The public perception or the general opinion about a person, organization, or thing, based on their actions, character, or achievements.