A proof of cash represents
A) a test of controls and substantive test of transactions.
B) a substantive test of transactions.
C) a substantive test of transactions and test of details of balances.
D) a test of details of balances.

Question

Quizplus · Accepted Answer

A proof of cash is a procedure used in auditing to reconcile the cash balance shown on the company's bank statement with the balance shown in its accounting records. This involves both a substantive test of transactions to ensure that all cash transactions have been recorded accurately, and a test of details of balances to ensure that the cash balance is accurate according to the company's records. Therefore, the best choice is C - a substantive test of transactions and test of details of balances.

A Proof of Cash Represents