One of the Commonly Used Substantive Tests for Cash Balances

question 6

Essay

One of the commonly used substantive tests for cash balances is to confirm the bank balance directly with the bank Name five categories of information requested on a standard bank confirmation request.

---

Definitions:

Bank Statements

Monthly or quarterly documents issued by a bank detailing all transactions in a customer's account.

Cash Dividends

Payments made by a corporation to its shareholders, typically out of its earnings, as a distribution of profits.

Income Statement

An income statement is a financial report that details a company's revenues and expenses over a specific period, culminating in a net income or loss to show the company's financial performance.

Stockholders

Individuals or entities that own shares in a corporation, making them partial owners of the company.