When auditing the general cash account, receipt of a standard bank confirmation satisfies the completeness objective for unrecorded bank balances and loans from the bank.

Question

Quizplus · Accepted Answer

A standard bank confirmation primarily verifies the existence and accuracy of cash balances and details of loans from the bank as of a certain date, but it does not directly address the completeness of unrecorded bank balances and loans, which would require additional audit procedures.

When Auditing the General Cash Account, Receipt of a Standard