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WorksheetsCash Balance Cycle
Total questions: 10
Worksheet time: 3mins
Which of the following cycles does not affect cash in bank?
Capital acquisitions cycle.
Inventory and warehousing.
Payroll and personnel cycle.
Acquisitions and disbursements.
Which of the following would normally be discovered as part of the audit of the bank reconciliation?
Failure to bill a customer.
Payment to an employee for more hours than she worked.
Failure to include a deposit in transit on the bank reconciliation.
Duplicate payment of a vendor's invoice.
An imprest petty cash fund would least likely be used to pay for which of the following items?
Minor office supplies
Stamps for small mailings
Small contributions to a local charity
Monthly interest expense
A partial-period bank statement and the related canceled cheques, duplicate deposit slips, and other documents included in bank statements, mailed by the bank directly to the CPA firm's office, is called:
a four-column proof of cash.
a year-end bank statement.
a cutoff bank statement.
a short-period bank statement.
Because cash is the most desirable asset for people to steal, it has a higher:
control risk
inherent risk
detection risk
liquidity risk
The emphasis in verifying petty cash is normally on which of the following?
Controls over petty cash
Year-end balance
Transactions for the period
Balance sheet classifications
A proof of cash is not an effective procedure for identifying which of the following types of misstatements?
Some cheques were written for incorrect amounts.
All recorded disbursements were paid by the bank.
All recorded cash receipts were deposited.
All amounts that were paid by the bank were recorded.
The process of transferring money from one bank account to another and improperly recording the transaction is referred to as:
kiting
lapping
embezzling
scamming
A major consideration in the audit of the general cash balance is the possibility of fraud. The auditor must extend his or her procedures in the audit of year-end cash to determine the possibility of a material fraud when there are:
large cash balances at the end of the year.
large cash receipts and disbursements during the year.
no imprest accounts used for payroll.
inadequate internal controls.
In addition to confirming bank balances of your audit client, a bank confirmation would normally contain:
the client's bank loans with due date, interest rate, and collateral requested.
the client's credit history as regards to paying back loans.
the client's managements bank account information.
the client's business prospects.
