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:

Expected Frequency

The theoretical number of times an outcome is anticipated to occur in a statistical experiment based on the total number of observations and the probabilities of outcomes.

Uniformly Distributed

Describes a distribution where all outcomes are equally likely to occur.

Capital Punishment

A legal penalty where a person is sentenced to death by the state as punishment for a crime.

Poisson Distribution

A discrete probability distribution expressing the probability of a given number of events occurring in a fixed interval of time or space, assuming that these events occur with a known constant mean rate and independently of the time since the last event.