[Anonymous]

A cash shortage may be concealed by transporting funds from one location to another or by converting negotiable assets to cash. Because of this, which of the following is vital?

Simultaneous confirmations.

Simultaneous bank reconciliations.

Simultaneous verification.

Simultaneous surprise cash count.

Answer C. This answer is correct because by simultaneously verifying cash, securities, and other related items, any concealment of cash shortages will be exposed. If a transfer from another account is made to conceal a cash shortage, a shortage in the transferred item will result and this will be identified.

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What is the difference between confirmation and verification? Aren’t they the same thing?

[omalloy]

“Audit evidence is more reliable when it is obtained from knowledgeable independent sources outside the entity.” -https://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-00326.pdf

Confirmation- looking at internally generated reports

Verification – getting reports from the outside sources

FAR 65, 70, 78
REG 64, 76
BEC 70, 80
AUD 81

Ethics 96

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[jschrei2]

I'm not sure omalloy's response is accurate. Unless the 100's of confirmations I have done are wrong, confirmations have nothing to do with internal reports. For example, Bank Confirmations would be with an outside source (bank). Accounts Receivable confirmations would also be from outside sources (purchaser).

As for what the difference between the two is….not sure.

FAR- 88
REG- 88
AUD- 93
BEC-86

[omalloy]

I was tying the concept back to the standard, but when it comes to the more specific use of word in English language in general confirm means that the truth is there and you double check. Verify means that you doubt something is 100% true, so you double check.

FAR 65, 70, 78
REG 64, 76
BEC 70, 80
AUD 81

Ethics 96

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[Anonymous]

Please do not listen to anything Omalloy has said above. No disrespect, but everything that was said is incorrect.

[CPA soon]

I would say confirmation is confirming with a 3rd party for existence (Balance) or occurance (Transaction) such as confirmation an A/R balance where as verification is the auditor is verifying the accuracy of let's say a balance amount.

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[CPA soon]

I would say confirmation is confirming with a 3rd party for existence (Balance) or occurance (Transaction) such as confirmation an A/R balance where as verification is the auditor is verifying the accuracy of let's say a balance amount.

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[Author]

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