Bank confirmation obtained directly from the bank provides evidence of all of the following EXCEPT:
ABalances held at the year end
BSecurities and guarantees given
CThe recoverability of trade receivablesCORRECT
DAccounts closed during the year
ICANAudit & AssuranceSubstantive Procedures: Assets and Liabilities2025
AI
Toaster Teacher
Why the answer is C, and why the others tempt you.
A bank confirmation covers balances, loans, security, guarantees and other arrangements with the bank. Recoverability of receivables is tested by review of after date cash and the aged analysis.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →
Practice more Audit & Assurance questions
ICAN Audit & Assurance has thousands more questions like this — with Worked answers on every one.