Which of the following represents a typical substantive audit procedure for cash balances?

Question

Quizplus · Accepted Answer

Verifying material deposits-in-transit to subsequent statements is a common substantive audit procedure for cash balances. This involves examining deposits recorded on the client's bank statements that were made after the period end but before the date of the subsequent bank statement to ensure that they have been properly recorded in the client's cash account. The auditor would also confirm the amounts with the bank.

Option B is also a legitimate audit procedure for cash balances, but it is not a typical one. Option C is a test of cutoff, not a substantive audit procedure for cash balances. Option D is not an acceptable audit procedure as it involves fraudulent activity.

Which of the Following Represents a Typical Substantive Audit Procedure