Which of the following substantive tests of cash account balances are always performed?
A) Test cut-off of cash receipts, cash payments and transfers at year-end
B) Confirm cash held by others
C) Examine the client's bank reconciliations
D) All of the above

Question

Quizplus · Accepted Answer

All three substantive tests are crucial in providing sufficient evidence for the auditor's evaluation of the cash account balance. Testing cut-off ensures that all transactions are recorded and reflected in the appropriate period. Confirming cash balances held by others provides independent verification of the existence of cash balances. Examining bank reconciliations ensures that all reconciling items are properly accounted for and accurately reflected in the cash balance.

Which of the Following Substantive Tests of Cash Account Balances