Which of the following procedures does the auditor typically perform when testing the existence of cash?
A)Counting cash at the depository institution.
B)Inquiry of management.
C)Sending a standard bank confirmation.
D)Tracing the bank reconciliation to the general ledger.

Question

Quizplus · Accepted Answer

Sending a standard bank confirmation is a direct method auditors use to verify the existence and amount of cash reported by a company. This involves requesting confirmation from the company's bank(s) regarding cash balances and other pertinent information as of a specific date.

Which of the Following Procedures Does the Auditor Typically Perform