Podcast
Questions and Answers
What is the best evidence an auditor could obtain to determine if check kiting is taking place?
What is the best evidence an auditor could obtain to determine if check kiting is taking place?
- Documentary evidence obtained by vouching credits on the latest bank statement to supporting documents.
- Oral evidence obtained by discussion with controller personnel.
- Documentary evidence obtained by vouching entries in the cash account to supporting documents.
- Evidence obtained by preparing a schedule of interbank transfers. (correct)
Which of the following is a primary audit objective for cash?
Which of the following is a primary audit objective for cash?
- That cash on hand as shown in the general ledger is represented by currency and coins on hand.
- Ownership and proper accountabilities.
- That cash balances are available without restrictions.
- All of the above. (correct)
Which of the following is the most appropriate audit procedure to ensure the cash balance is accurately recorded on the company's financial statements?
Which of the following is the most appropriate audit procedure to ensure the cash balance is accurately recorded on the company's financial statements?
- Examine bank reconciliations, confirm bank balances, and verify cut off of receipts and disbursements; foot totals of reconciliations and compare to cash account balances. (correct)
- Observe the cash count and trace the total to the general ledger.
- Interview the company's controller to understand their cash management practices.
- Perform analytical procedures to identify any unusual fluctuations in the cash balance.
Which of the following is NOT a primary audit objective for cash?
Which of the following is NOT a primary audit objective for cash?
What is the best evidence an auditor could obtain to determine if check kiting is taking place?
What is the best evidence an auditor could obtain to determine if check kiting is taking place?
Which of the following is NOT a primary audit objective for cash?
Which of the following is NOT a primary audit objective for cash?
Which of the following audit procedures is used to determine that cash is promptly deposited?
Which of the following audit procedures is used to determine that cash is promptly deposited?
What is the primary purpose of sending a standard confirmation request to financial institutions with which the client has done business during the year?
What is the primary purpose of sending a standard confirmation request to financial institutions with which the client has done business during the year?
What is the major flaw in the audit procedure where the auditor instructed the client's personnel to prepare a standard bank confirmation request for a bank account that had been closed during the year?
What is the major flaw in the audit procedure where the auditor instructed the client's personnel to prepare a standard bank confirmation request for a bank account that had been closed during the year?
Which set of information does an auditor usually confirm on one form?
Which set of information does an auditor usually confirm on one form?
What is a purpose of the auditor ordinarily sending a standard confirmation request to all banks with which the client has done business during the year under audit, regardless of the year-end balance?
What is a purpose of the auditor ordinarily sending a standard confirmation request to all banks with which the client has done business during the year under audit, regardless of the year-end balance?
Which of the following audit procedures is used to review the segregation of duties for cash receipts?
Which of the following audit procedures is used to review the segregation of duties for cash receipts?
