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IIA-CIA-PART2 · Question #242

IIA-CIA-PART2 Question #242: Real Exam Question with Answer & Explanation

The correct answer is A. Bank confirmations. Bank confirmations are the most reliable source for verifying the current year-end bank balances. These confirmations are direct responses from the bank to the auditor, providing independent verification of the account balances as of the end of the year. This external confirmatio

Question

As part of internal audit's assistance with an annual external audit, the internal auditors are required to do a preliminary analytical review of an bank account balances. This involves verifying the current year end balances as web as comparing the current year end balances with previous year end balances to highlight significant changes. Which of the following is the most reliable source for verification of the current year end bank balances?

Options

  • ABank confirmations
  • BInternal bonk statements
  • CBank reconciliations as of the end of the year
  • DBank account general ledger balancer as of the end of the year

Explanation

Bank confirmations are the most reliable source for verifying the current year-end bank balances. These confirmations are direct responses from the bank to the auditor, providing independent verification of the account balances as of the end of the year. This external confirmation is considered more reliable than internal documents like bank statements, reconciliations, or general ledger balances because it comes directly from a third-party source, ensuring its accuracy and completeness.

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As part of internal audit's assistance with an annual external... | IIA-CIA-PART2 Q#242 Answer | NerdExam