Indicate the steps that an auditor should take while testing the cash balances deposited with the financial institutions.

Question

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Answer 1

Question

Chapter C6, Problem 1DQ

To determine

Indicate the steps that an auditor should take while testing the cash balances deposited with the financial institutions.

Expert Solution & Answer

Explanation of Solution

The following are the steps that an auditor should take while testing the cash balances deposited with the financial institutions:

Obtain client permission and request for the confirmation from the banks about the cash balances deposited by client in those financial institutions or banks.
Verify the correct bank address in order to avoid the misdirection by the client.
Instruct the bank officials to not disclose the client personnel about the confirmations through mail, and maintain direct communication.
Instruct the bank officials to return the responses to the audit firm, not to the client.

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Answer 2

Question

Chapter C6, Problem 1DQ

To determine

Indicate the steps that an auditor should take while testing the cash balances deposited with the financial institutions.

Expert Solution & Answer

Explanation of Solution

The following are the steps that an auditor should take while testing the cash balances deposited with the financial institutions:

Obtain client permission and request for the confirmation from the banks about the cash balances deposited by client in those financial institutions or banks.
Verify the correct bank address in order to avoid the misdirection by the client.
Instruct the bank officials to not disclose the client personnel about the confirmations through mail, and maintain direct communication.
Instruct the bank officials to return the responses to the audit firm, not to the client.

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Answer 3

Question

Chapter C6, Problem 1DQ

To determine

Indicate the steps that an auditor should take while testing the cash balances deposited with the financial institutions.

Expert Solution & Answer

Explanation of Solution

The following are the steps that an auditor should take while testing the cash balances deposited with the financial institutions:

Obtain client permission and request for the confirmation from the banks about the cash balances deposited by client in those financial institutions or banks.
Verify the correct bank address in order to avoid the misdirection by the client.
Instruct the bank officials to not disclose the client personnel about the confirmations through mail, and maintain direct communication.
Instruct the bank officials to return the responses to the audit firm, not to the client.

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Answer 4

Question

Chapter C6, Problem 1DQ

To determine

Indicate the steps that an auditor should take while testing the cash balances deposited with the financial institutions.

Expert Solution & Answer

Explanation of Solution

The following are the steps that an auditor should take while testing the cash balances deposited with the financial institutions:

Obtain client permission and request for the confirmation from the banks about the cash balances deposited by client in those financial institutions or banks.
Verify the correct bank address in order to avoid the misdirection by the client.
Instruct the bank officials to not disclose the client personnel about the confirmations through mail, and maintain direct communication.
Instruct the bank officials to return the responses to the audit firm, not to the client.

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Answer 5

Chapter C6, Problem 1DQ

To determine

Indicate the steps that an auditor should take while testing the cash balances deposited with the financial institutions.

Expert Solution & Answer

Explanation of Solution

The following are the steps that an auditor should take while testing the cash balances deposited with the financial institutions:

Obtain client permission and request for the confirmation from the banks about the cash balances deposited by client in those financial institutions or banks.
Verify the correct bank address in order to avoid the misdirection by the client.
Instruct the bank officials to not disclose the client personnel about the confirmations through mail, and maintain direct communication.
Instruct the bank officials to return the responses to the audit firm, not to the client.

Answer 6

Chapter C6, Problem 1DQ

To determine

Indicate the steps that an auditor should take while testing the cash balances deposited with the financial institutions.

Expert Solution & Answer

Explanation of Solution

The following are the steps that an auditor should take while testing the cash balances deposited with the financial institutions:

Obtain client permission and request for the confirmation from the banks about the cash balances deposited by client in those financial institutions or banks.
Verify the correct bank address in order to avoid the misdirection by the client.
Instruct the bank officials to not disclose the client personnel about the confirmations through mail, and maintain direct communication.
Instruct the bank officials to return the responses to the audit firm, not to the client.

Answer 7

Chapter C6, Problem 1DQ

To determine

Indicate the steps that an auditor should take while testing the cash balances deposited with the financial institutions.

Answer 8

Expert Solution & Answer

Explanation of Solution

The following are the steps that an auditor should take while testing the cash balances deposited with the financial institutions:

Obtain client permission and request for the confirmation from the banks about the cash balances deposited by client in those financial institutions or banks.
Verify the correct bank address in order to avoid the misdirection by the client.
Instruct the bank officials to not disclose the client personnel about the confirmations through mail, and maintain direct communication.
Instruct the bank officials to return the responses to the audit firm, not to the client.