Problem

Your client is in the process of acquiring another company. You have been requested to ver...

Your client is in the process of acquiring another company. You have been requested to verify that cash for the company being acquired is properly stated. The audit technique that will yield the most persuasive evidence is

A. Examination of the company’s escrow account.

B. Interview with the company’s treasurer and cash manager.

C. Preparation and review of standard bank confirmation inquiries.

D. Analytical computations comparing current cash in the bank with previous accounting periods.

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