Chapter 18 General cash and investments Tests of controls a

Chapter 18 General cash and investments - Tests of controls and tests of balances 12. An auditor traces deposits in transit from the client\'s bank reconciliation to a cutoff ban statement from the client\'s bank. Which of the following combination of specific audit objectives is this audit procedure aims to achieve? Occurrence Completeness Accuracy Cutoff yes no no no yes no no no no no yes no no yes no IV. no a. I and IV. b. II and IV. c. II and III. d. III and IV

Solution

Answer is C. II and III.

Explanation: The confirmation if deposit in transit by cross-checking the bank reconciliation statement and cut off bank statement is to make the auditor relied upon the deposit in transit as to its accuracy and completeness.