Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

View Policies Current Attempt in Progress Mohammad Amed is responsible for preparing bank reconciliation statements at Ajax Ltd. Ajax has many bank accounts, including separate

image text in transcribed

View Policies Current Attempt in Progress Mohammad Amed is responsible for preparing bank reconciliation statements at Ajax Ltd. Ajax has many bank accounts, including separate accounts for each major branch, imprest accounts for salaries and dividends, and accounts kept in foreign currency for overseas divisions. Mohammad maintains records, including bank statements and weekly bank reconciliations, for each account. In addition, there are files containing correspondence with banks about disputed transactions, dishonoured cheques from Ajax's customers, and other bank-initiated transactions such as fees and interest. Which of the following are true? O The auditor would obtain more persuasive evidence by receiving documents directly from the bank. A bank confirmation would provide more reliable evidence. O The more persuasive evidence is Mohammad's documents, including bank reconciliations and copies of letters sent to banks and other parties. A bank confirmation is a negative form of confirmation. A bank confirmation would confirm the balances of the client's various accounts at specific dates, the interest rates and fees that apply to the client's bank accounts, loan balances, and so on. O Evidence would be more persuasive if it does not pass through the hands of the client and therefore, cannot be altered by the client

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey Of Accounting

Authors: Carl S. Warren, Amanda Farmer

9th Edition

0357132599, 978-0357132593

More Books

Students also viewed these Accounting questions