Which of the following is the primary reason the auditor obtains and reviews a cutoff bank statement?
A)Verify the balance of cash per the bank's general ledger at the balance sheet date.
B)Verify the reconciling items on the year-end bank reconciliation.
C)Test for intentional lapping of bank transfers.
D)Foot the cutoff bank statement for completeness.

Question

Quizplus · Accepted Answer

The primary reason an auditor reviews a cutoff bank statement is to verify the reconciling items on the year-end bank reconciliation, ensuring that the cash balances reported are accurate and that all transactions around the year-end are recorded in the correct period.

Which of the Following Is the Primary Reason the Auditor