WorksheetsAudit & Assurance
Total questions: 20
Worksheet time: 10mins
The following which is not fraud-related Audit Procedures :
Test of detail of cash balances
Proof of cash
Test of kiting
Test of lapping
What assertion of "To ensure that there is no unrecorded cash"
Existence
Cut-off
Detail tie-in
Completeness
Cash is more susceptible to theft; therefore, there is high inherent risk for the (), (), and () objectives except:
Existence
Completeness
Cut-off
Accuracy
The following which is internal controls:
Inherent risks
Cash receipts and payments
Test of details of cash balances
Test of lapping
What assertion for “Examine a sample of cash receipts and payments transactions for proper classification.”
Classification
Existence
Valuation
Completeness
Companies may purchase marketable securities as a way to temporarily invest excess cash
True
False
Examples of cash equivalents include time deposits, certificates of deposit, and marketable securities
True
False
__________by the client subsequent to the balance sheet date, but recorded as cash receipts in the current year
Deposit
Payments
Cash received
Bank balance
Evaluations of financial information made through analysis of plausible relationships among both financial and non financial data is the meaning of:
Analytical procedures
Assertions
Cash equivalents
Confirmation
Purpose Of Auditing The Cash And Bank Balances
To determine all cash received is properly recorded
To ensure all disbursements are properly authorized and documented
To recorded cash balances matches cash on hand or on deposit
All above
_____ is the transferring of money from one bank to another and incorrectly recording the transaction
Transfer
Flipping
Frauding
Kiting
Which of the following procedures may uncover fraud in the cash receipts area?
None of the above
Deleting the receipts
Aging of receipts
Tests to detect lapping
Select the correct match:
Occurance- Select samples of cash receipts from cash book and trace to remittance advices, pay-in slips and bank statement
Completeness- Trace a sample of remittance advices and pay-in slip to cash receipt journal
Valuation- Agree the adjusted book balance on the cash account lead scheudule
Accuracy- Agree the total of cash receipts and payments to general ledger
Which account is included in each business cycle except inventory and warehousing?
Accounts receivable
Cash
Accounts payable
Common stock
To gather evidence regarding the balance per bank in a bank reconciliation, an auditor would easy examine all of the following except the:
Bank confirmation
Cutoff bank statement
General ledger
Year-end bank statement
Which of the following errors would be least likely to be discovered during the audit of the medium acquisitions and payments cycle?
Payment of interest to a related party for an amount in excess of the going rate
Duplicate payment of a vendor’s invoice
Improper payments of officers’ personal expenditures
Payment for raw materials that were not received
__________ are used to confirm information with the bank where the client has dealings
Third parties
Accounts bank
Liquid assets
Standards letters
Examine a sample of cash receipts and payments transactions for proper classifications
Classifications
Occurrence
Valuation
Existence
Fraud-related audit procedures for cash
Proof of cash
Test of kiting
Extended bank reconciliations procedures
All above
On receiving the cutoff bank statement, the auditor should vouch
Deposits in transit on the year-end bank reconciliation to deposits in the cash receipts journal
Checks dated before year-end listed as outstanding on the year-end bank reconciliation to the cutoff statement
Deposits listed on the cutoff statement to deposits in the cash receipts journal
Checks dated after year-end to outstanding checks listed on the year-end bank reconciliation and to the cutoff statement
