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A proof of cash involved a combination of substantive tests of transactions and tests of details of balances.

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Final answer:

A proof of cash process, which is true, combines substantive tests of transactions and tests of details of balances to ensure the accuracy of a company's cash records.

Step-by-step explanation:

The statement that a proof of cash involves a combination of substantive tests of transactions and tests of details of balances is true. A proof of cash is a reconciliation process typically used in auditing to verify the completeness and accuracy of a company's cash records. This process includes validating the transactions that have affected the cash balance during a particular period, which involves both substantive tests of those transactions and tests of the details of cash balances at the period end.

Substantive tests are performed to detect material misstatements in the financial statements, while the tests of details of balances are focussed more specifically on verifying the correctness of the ending cash balance. By combining these tests, auditors can assure that the amount of cash reported in the financial statements accurately reflects the company's actual cash position.

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