Auditors Ordinarily Send a Standard Bank Confirmation to All Banks

question 23

Multiple Choice

Auditors ordinarily send a standard bank confirmation to all banks with which the client has done business during the year under audit,regardless of whether the client has closed its account.One reason for doing so is to ________.

• A)provide the data necessary to prepare a summary of cash
• B)request that a cutoff bank statement and cancelled cheques be sent to the auditor
• C)detect lapping activities that might otherwise not be discovered
• D)obtain information about unrecorded liabilities and security agreements

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Definitions:

Mean

The central value of a dataset, calculated as the sum of all values divided by the total number of values.

Standard Error

Standard error measures the accuracy with which a sample represents a population, quantifying the variability of the sampling distribution of a statistic.

Confidence Interval

A variety of values taken from sample data, expected to encompass the value of a not yet known population attribute.

Standard Error

A common measure of variability within a sample's distribution, particularly focused on the mean.