How Will the Auditor Most Likely Utilize the Bank Reconciliation

question 65

Multiple Choice

How will the auditor most likely utilize the bank reconciliation as evidence in the audit of cash?

• A)The auditor sends the reconciliation to the bank for independent verification.
• B)The auditor performs the reconciliation for the client to record the proper cash balance.
• C)The auditor traces the book balance of the reconciliation to the cutoff bank statement.
• D)The auditor tests deposits in transit and outstanding items to other corroborating evidence.

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Definitions:

Ileostomy

An ileostomy is a surgical opening made in the abdomen to allow the external passageway of waste from the ileum, part of the small intestine.

Paralysis

A medical condition where a person experiences loss of muscle function in part of their body.

Incisors

The front teeth in mammals that are primarily used for cutting food.

Bicuspids

Also known as premolars, these are types of teeth located between the canines and molars, used for grinding food.