The balance- related audit objective to determine that cash in bank is properly presented and disclosed can be met through which of the following tests of details of balances?
A) Foot the outstanding cheque list and deposits in transit
B) Test for kiting
C) Examine minutes, loan agreements and the bank confirmation for restrictions on the use of cash and compensating balances
D) Trace outstanding cheques to subsequent period bank statement

Question

Quizplus · Accepted Answer

Examining minutes, loan agreements, and bank confirmations for restrictions on the use of cash and compensating balances helps ensure that cash is properly presented and disclosed, as it identifies any limitations or conditions affecting the cash balance.

The Balance- Related Audit Objective to Determine That Cash in Bank