Auditors Tests of the Client's Bank Reconciliation Is Done to Verify

question 90

Multiple Choice

Auditors tests of the client's bank reconciliation is done to verify whether the client's recorded bank balance is the same amount as the actual cash in the bank. Which of the following would not explain a difference between the company's cash balance and the bank's balance for the client?

• A) Deposits in transit
• B) Cash collected on a Note Receivable by the bank
• C) Other reconciling items
• D) Outstanding checks

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Definitions:

Daily Profit

The financial gain or loss a business experiences in a single day of operation.

Probabilities P

A mathematical determination of the likelihood of a specific event occurring, usually expressed as a number between 0 and 1.

Event A

A specified outcome or set of outcomes of a random experiment.

Random Variable

A variable whose values are numerical and result from randomness.