In the Course of Examining the Cutoff Bank Statement for a Client,an

question 40

Multiple Choice

In the course of examining the cutoff bank statement for a client,an auditor is puzzled to discover that none of the cheques listed as outstanding on the year-end bank reconciliation has cleared the bank.This could be an indication that the client ________.

• A)is engaged in kiting
• B)has overstated the year-end balance of cash
• C)mailed the cheques to vendors after the year-end
• D)left the cash receipts journal open after the year-end.

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Definitions:

Financial Exploitation

The illegal or improper use of another individual's funds, properties, or resources.

Baby Boomers

People born between 1946 and 1964.

Sandwich Generation

Taking care of one’s own children and aging parents.

Aging Parents

Older adults who are parents, often facing health and mobility challenges while possibly being cared for by their children.