The Direct Receipt of a Confirmation from Every Bank with Which

question 60

Multiple Choice

The direct receipt of a confirmation from every bank with which the client does business is

• A) required by auditing standards for every audit.
• B) not necessary unless material fraud is suspected.
• C) recommended but not required by auditing standards.
• D) necessary for every audit except when there are an unusually large number of active accounts.

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Definitions:

Layers

Refers to the different levels or strata within organizations, systems, or structures.

Teams

Groups of individuals working together towards a common goal, characterized by cooperative effort, shared responsibility, and collective accountability.

Modular Organizations

A flexible organizational structure where components or units can be easily fitted together or recombined to adapt to different tasks or environments.

Many Outsiders

Indicates a situation in which a large number of people or entities are not part of a specific group, organization, or inside circle.