B is corrent 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.
A is incorrect because a simultaneous surprise cash count, by itself, would not detect a shortage of cash. Only cash on hand would be verified by this method and the auditor would not be able to determine if negotiable assets had been converted to cash.
C is incorrect because a simultaneous bank reconciliation will not, by itself, detect a cash shortage. Only a limited amount of cash would be included in a bank reconciliation statement. Other sources of cash would not be verified.
D is incorrect because a simultaneous confirmation will not, by itself, detect a cash shortage concealed by transporting funds from one location to another.
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