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