Client management's review of monthly bank reconciliations prepared by employees is an example of a control over the accuracy of cash balances that the auditor might test.

Question

Quizplus · Accepted Answer

The statement is true, as client management's review of monthly bank reconciliations is a control over the accuracy of cash balances. The auditor may test this control as part of their audit procedures to gain assurance over the completeness and accuracy of reported cash balances.

Client Management's Review of Monthly Bank Reconciliations Prepared by Employees