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:

Natural Comparative Advantage

A situation where a country or region can produce a particular good or service at a lower opportunity cost compared to other countries or regions.

Factor Endowments

Refers to the quantity and quality of resources a country or region has available, such as labor, land, and capital.

Heckscher-Ohlin Theorem

An economic theory stating that countries export what they can most efficiently and abundantly produce.

Labor Intensive

describes industries or production processes that require a large amount of labor relative to capital in the production process.