Examine bank reconciliations, confirm bank balances, and verify cut off of receipts and disbursements; foot totals of reconciliations and compare to cash account balances.

Which of the following is NOT a primary audit objective for cash?

Completeness of recorded cash transactions.

What is the best evidence an auditor could obtain to determine if check kiting is taking place?

Evidence obtained by preparing a schedule of interbank transfers.

Which of the following is NOT a primary audit objective for cash?

Completeness of recorded cash transactions.

Which of the following audit procedures is used to determine that cash is promptly deposited?

Compare the daily cash receipts totals with the bank deposits.

What is the primary purpose of sending a standard confirmation request to financial institutions with which the client has done business during the year?

Corroborate information regarding deposit and loan balances.

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?

The bank account had been closed during the year.

Which set of information does an auditor usually confirm on one form?

Accounts receivable and accrued interest receivable.

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?

Detect kiting activities that may otherwise not be discovered.

Which of the following audit procedures is used to review the segregation of duties for cash receipts?

Compare cash receipt lists with the receipts journal and bank deposit slips.

Test your knowledge on audit procedures related to check kiting suspicions. Choose the best evidence an auditor could obtain concerning whether check kiting is taking place.