WorksheetsAssurance of Cash
Total questions: 30
Worksheet time: 15mins
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 not fraud-related Audit Procedures :
Test of detail of cash balances
Proof of cash
Test of kiting
Test of lapping
What assertion for “Examine a sample of cash receipts and payments transactions for proper classification.”
Classification
Existence
Valuation
Completeness
__________by the client subsequent to the balance sheet date, but recorded as cash receipts in the current year
Deposit
Payments
Cash received
Bank balance
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
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
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
Which of the following relatively small misstatements most likely could have a material effect on an entity's financial statements?
A. An illegal payment to a foreign official that was not recorded.
B. A piece of obsolete office equipment that was not retired.
C. A petty cash fun disbursement that was not properly authorized.
D. An uncollectible account receivable that was not written off.
An assurance report on information can provide assurance about the information’s:
Reliability
relevance
timeliness
All the above
Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Determine the adjusted balance on May 31.
Cash balance per company records, May 31.........$5400
Notes received and collected by bank.........................$650
Deposits in transit........................................................................$375
Bank charges for check printing.....................................$40
Outstanding Checks.............................................................$2400
NSF Check...............................................................................$140
$3845
$4930
$5870
$6245
A $127 petty cash fund has cash of $21 and receipts of $93. The journal entry to replenish the account would include which of the following?
debit to Cash Short and Over for $13
credit to Cash for $127
debit to Cash for $21
credit to Petty Cash for $93
The debit made in the journal to reimburse the petty cash fund is to...
Cash
various accounts for which the petty cash was distributed
Accounts Receivable
Petty Cash
Minor Company had checks outstanding totaling $19,200 on its April bank reconciliation. In May, Minor Co. issued checks totaling $64,900, and the bank statement shows that $47,600 in checks was cleared. The number of outstanding checks on Minor Co. May bank reconciliation should be:
$17,300
$36,500
$66,800
$28,400
A voucher is usually supported by:
a purchase order
a supplier's invoice
a receiving report
All of these choices
Which of the following would be subtracted from the balance per company records on a bank reconciliation?
outstanding checks
error in recording a check issued for $732 as $723
notes collected by the bank
deposits in transit
Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n):
deduction from the balance per company's records
addition to the balance per bank statement
addition to the balance per company's records
deduction from the balance per bank statement
Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n):
deduction from the balance per company's records
deduction from the balance per bank statement
addition to the balance per company's records
addition to the balance per bank statement
Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is a(n):
deduction from the balance per the bank statement
deduction from the balance per the company's record
addition to the balance per the bank statement
addition to the balance per the company's record
A check drawn by a company for $340 in payment of liability was recorded in the journal as $430. This item would be included on the bank reconciliations a(n):
addition to the balance per the bank statement
addition to the balance per the company's record
deduction to the balance per the bank statement
deduction to the balance per the company's record
Which of the following should NOT be considered cash by an accountant?
bank checking account
traveler's checks
postage stamps
money orders
Consider the following information taken from the cash account. Assume cash payments were 80% of collections.
Cash
?????? Beginning Balance
$115,375 Deposits
???????? Checks
$80,275 Ending Balance
How much was the beginning balance of the cash account?
$92,300
$57,200
$103,350
$35,100
Errors of ommision are
Technical error
Error of principle
Compensating errors
None of these
Investment should be vouvhed with the help of
Creditors statement
Correspondence with suppliers
Cash memos
Ledger accounts
Examine the cash receipts journal in the accounting system and compare the amounts received to the corresponding amounts invoiced in the revenue accounting system and to the bank statement evidencing the deposit. This is an example of which of the following?
audit objective
audit program
audit assertion
audit procedure
While performing an engagement relating to an organization’s cash controls, the internal auditor observed that cash deposits are not deposited intact daily. A comparison of a sample of cash receipts lists revealed that each cash receipt list equaled cash journal entry amounts but not daily bank deposits amounts, and cash receipts list totals equaled bank deposit totals in the long run. This information as support for the internal auditor’s observations is
Relevant but not sufficient or reliable.
Sufficient but not reliable or relevant.
Not sufficient, reliable, or relevant.
Sufficient, reliable, and relevant.
