The auditor is testing a bank reconciliation that was prepared by the client. To test the "balance per the bank" the strongest procedure the auditor can perform is to

• A. compare the balance to a bank statement the client has on hand.
• B. make inquiries of client personnel.
• C. agree the balance with the client's general ledger.
• D. obtain a confirmation directly from the bank.

The auditor is testing a bank reconciliation that was prepared by the client. "Deposits in transit" represent

• A. none of the above.
• B. deposits at or near year-end that the client made to the bank, but for which the bank hasn't yet credited the client's bank account.
• C. deposits made by customers that the client hasn't received yet.
• D. deposits in transit from one client location to another client.

The auditor is testing a bank reconciliation that was prepared by the client. "Outstanding checks" represent

• A. interesting checks in terms of the amount or nature of the check.
• B. checks written by the client that were accidentally recorded twice.
• C. checks written by the client that have not yet cleared the bank as of the date of the reconciliation.
• D. an accounting term that does not warrant specific testing by the auditor.