An auditor's request for information about the amount of cash held in the bank and details of any loans is referred to as a ________.
A)bank confirmation
B)financial confirmation
C)negative confirmation
D)audit confirmation

Question

Quizplus · Accepted Answer

A request for information about the amount of cash held in the bank and details of any loans would be referred to as a bank confirmation. This is a common request made by auditors in order to verify the accuracy of a company's financial statements. The other choices, financial confirmation and negative confirmation, are not specific enough to the type of request being made by the auditor. The term "audit confirmation" could refer to any number of different types of requests made by the auditor, and is not specific enough to be considered the best choice in this instance.

An Auditor's Request for Information About the Amount of Cash