Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.
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A. B.A
The correct answer is A. True.
A bank cut-off statement is a document that shows all transactions that have cleared a bank account up to a certain date. It is a useful tool in detecting fraudulent activities in financial statements.
When performing a financial statement audit or investigation, the auditor or investigator should request bank cut-off statements from the bank for a period of 10-15 days after the balance sheet date. This is to ensure that all transactions that occurred up to the balance sheet date have been recorded in the financial statements.
If the auditor or investigator only requests cut-off statements for a few days after the balance sheet date, there is a risk that transactions occurring after that period may not have been recorded in the financial statements, leading to misstatements or omissions.
Therefore, to ensure the completeness and accuracy of financial statements, it is important to request bank cut-off statements for a period of 10-15 days after the balance sheet date.