An audit plan of substantive procedures for cash would not include:
A)request a cutoff bank statement be mailed to the client.
B)request client to prepare bank reconciliations.
C)prepare a schedule of interbank transfers for a period of ten business days before and after year-end date.
D)obtain a written client representation concerning compensating balance agreements.

Question

Quizplus · Accepted Answer

Requesting a cutoff bank statement to be mailed directly to the client rather than the auditor does not align with standard audit procedures for verifying cash balances. Typically, auditors request that such statements be mailed directly to them to ensure the integrity of the information received.

An Audit Plan of Substantive Procedures for Cash Would Not