Question

An auditor may obtain information on the December 31 month-end balance per bank in which of the following?

	Standard Confirmation Form	January 1-10 Cutoff Statement
A)	Yes	Yes
B)	Yes	No
C)	No	Yes
D)	No	No

Select one:

a. Option A

b. Option B

c. Option C

d. Option D

Answer 1

Solution:

Correct answer is option A as auditor can take confirmation from standard confirmation form together with cut-off statement from january 1-10 to check outstanding at year end with outstanding at reconciliation.

Option B is incorrect as it excludes cut off statement from january 1-10.

Option C is incorrect as it excludes standard confirmation form to confirm balance from client's bank.

Option D is incorrect as it excludes both confirmation and cut off statement.

Hope this helps:)