In the Course of Examining the Cutoff Bank Statement for a Client,an

question 40

Multiple Choice

In the course of examining the cutoff bank statement for a client,an auditor is puzzled to discover that none of the cheques listed as outstanding on the year-end bank reconciliation has cleared the bank.This could be an indication that the client ________.

• A)is engaged in kiting
• B)has overstated the year-end balance of cash
• C)mailed the cheques to vendors after the year-end
• D)left the cash receipts journal open after the year-end.

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Definitions:

Surgi-Centers

Specialized healthcare facilities focused on providing outpatient surgical care, including diagnostic and preventive procedures that do not require hospital admission.

Urgi-Centers

Healthcare facilities that provide immediate, non-emergency medical care without the need for an appointment, often more accessible than hospital emergency rooms.

Reimbursement System

A mechanism by which healthcare providers receive payments from insurers or patients for the services they have rendered.

For-Profit Ethics

Ethical considerations and practices applied within for-profit business operations, focusing on moral conduct in the pursuit of financial gain.