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

Question

Quizplus · Accepted Answer

Verify material deposits in transit to subsequent statements is a common substantive audit procedure for cash balances. This involves comparing the deposits in transit on the bank statement to the deposits on subsequent bank statements to ensure that they have been properly recorded and included in the client's cash balance. This procedure helps to detect and prevent errors or fraud in cash balances. Reviewing cash confirmations received by the client from the bank and foot cutoff bank statements are also other typical substantive audit procedures for cash balances, but performing kiting techniques to transfer cash between two client accounts is not an accepted audit practice and violates auditing standards.

Which of the Following Represents a Typical Substantive Audit Procedure