A proof of cash involves a combination of substantive tests of transactions and tests of details of balances.

Question

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A proof of cash involves testing the accuracy and completeness of a company's cash account balance by verifying the opening and closing balances, reconciling bank statements, and reviewing cash inflows and outflows. This requires a combination of substantive tests of transactions (such as examining cash receipts and disbursements) and tests of details of balances (such as verifying bank confirmations).

A Proof of Cash Involves a Combination of Substantive Tests