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Exam AUD topic 1 question 651 discussion

Actual exam question from AICPA's AUD
Question #: 651
Topic #: 1
[All AUD Questions]

Which of the following procedures would an auditor most likely perform in auditing the statement of cash flows?

  • A. Reconcile the amounts included in the statement of cash flows to the other financial statements' amounts.
  • B. Vouch a sample of cash receipts and disbursements for the last few days of the current year.
  • C. Reconcile the cutoff bank statement to the proof of cash to verify the accuracy of the year-end cash balance.
  • D. Confirm the amounts included in the statement of cash flows with the entity's financial institution.
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Suggested Answer: A 🗳️
Choice "A" is correct. To audit the statement of cash flows, the auditor reconciles the amounts on the statement to amounts on other financial statements.
Choice "B" is incorrect. Vouching a sample of cash receipts and disbursements is a procedure used to audit the cash balance, rather than the statement of cash flows.
Choice "C" is incorrect. Reconciling the cutoff bank statement to the proof of cash to verify the accuracy of the year-end cash balance is a procedure used to audit the cash balance, rather than the statement of cash flows.
Choice "D" is incorrect. Confirming cash amounts with the entity's financial institution is a procedure used to audit the cash balance, rather than the statement of cash flows. Evidential Procedures for Selected Accounts
by gemazyni at April 5, 2025, 4:56 p.m.

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