Typically, bank confirmations in the audit verify:
A) actual cash balance.
B) loan information.
C) both A and B
D) none of the above

Question

Quizplus · Accepted Answer

Bank confirmations in the audit verify both the actual cash balance as well as loan information, making choice C the correct answer. Bank confirmations are typically sent directly to the auditor by the bank, and provide assurance that the information provided on the client's financial statements is accurate and complete. By verifying the actual cash balance and loan information, the auditor can reduce the risk of material misstatement in the financial statements.

Typically, Bank Confirmations in the Audit Verify