One of the Commonly Used Substantive Tests for Cash Balancis

question 46

Essay

One of the commonly used substantive tests for cash balancis to confirm the bank balance directly with the bank through a Bank Confirmation Audit Request. What is the difference between the requirements of Canadian Auditing Standards and accepted practice in the industry? Name five of the categoriof information requested on a standard Bank Confirmation Audit Request.

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Definitions:

Zone of Indifference

A conceptual range within which individuals are indifferent to authority's decisions or directives, either accepting or obeying them without resistance.

Perceived

Understood or interpreted in a certain way by an individual, based on their personal judgment, feelings, or opinions.

Legitimate

Something that is authorized, legal, and recognized as valid or rightful, based on established rules or standards.

Expert Power

The power that exists when an agent has specialized knowledge or skills that the target needs.