Which of the following procedures can test the audit objective of determining that cash in bank, as stated on the reconciliation, foots correctly and agrees with the general ledger?
A) Examining the minutes of the board of directors for restrictions on the use of cash
B) Performing tests for kiting
C) Adding the unpresented cheques list and the list of deposits in transit
D) Receiving and testing a cutoff bank statement

Question

Quizplus · Accepted Answer

Adding the unpresented cheques list and the list of deposits in transit is a procedure used to verify that cash in bank, as stated on the reconciliation, foots correctly and agrees with the general ledger. Examining the minutes of the board of directors for restrictions on the use of cash would not directly test this audit objective. Performing tests for kiting and receiving and testing a cutoff bank statement may be useful in other audit objectives, but not specifically for this objective.

Which of the Following Procedures Can Test the Audit Objective