WorksheetsT9 Auditing Payables & Bank and Cash
Total questions: 10
Worksheet time: 10mins
Balance per payables ledger $400k vs Supplier statement $500k.
The difference is goods of $100k received and recognised as inventories at year end.
Is there a cut-off problem?
Yes
No
Don't Know
Balance per payables ledger $650k vs Supplier statement $700k.
The difference of $50k is cheque posted in the bank ledger account 30 Dec 20x5 before YE and appeared on the bank statement on 2 Jan 20x6.
Is there a cut-off problem?
Yes
No
Don't Know
Balance per payables ledger $100k vs Supplier statement $100k.
What further evidence, if any, is required to determine if trade payables is understated?
A review of credit notes issued by audit client should be performed.
A review of post year end purchase orders from the supplier.
A confirmation request must be sent to the supplier.
No further evidence is required.
Which of the following summarises the steps audit assistant should take in preparing the bank confirmation letter?
Written on the audit firm's headed paper, information requested to be sent directly to the client.
Written on the audit firm's headed paper, information requested to be sent directly to the auditor.
Written on the client's headed paper, information requested to be sent directly to the client.
Written on the client's headed paper, information requested to be sent directly to the auditor.
Which of the following source provides the MOST reliable audit evidence that the lodgements recorded before YE do not relate to amounts received after YE?
The date on the cheque paid by customers.
The date on the remittance advice.
The bank's date stamp on the deposit slip.
The date of lodgements cleared by the bank on bank statement.
Obtain bank reconciliation from client and cast to ensure mathematical accuracy.
Which type of audit procedure is this? (HOW - ACTION VERB)
(a)
Which of the following audit evidence in relation to bank and cash is MOST reliable?
Reperform bank reconciliation by audit assistant using client documents.
Results of cash count performed by internal audit.
Print out from audit client's online banking system provided by the accounts clerk.
Bank confirmation letter received from audit client's bank.
Cheques $300k issued to suppliers were not posted until 2 June 2025 are included in the cash book at the FYE 31 May 2025.
What is the resultant effect on the bank and cash balance?
Bank and cash is overstated by $300k
Bank and cash is understated by $300k
Bank and cash is not misstated
Customer payments totalling $700k which were paid into the bank on 3 June 2025 are included in the cash book at the FYE of 31 May 2025.
What is the resultant effect on the bank and cash balance?
Bank and cash is understated by $700k
Bank and cash is overstated by $700k
Bank and cash is not misstated.
The audit client's FYE is 31 May 2025.
Bank charges for May 2025 totally $100,000 were not charged by the bank until June 2025.
What is the resultant effect on the YE bank and cash balance?
Bank and cash is understated by $100k
Bank and cash is overstated by $100k
Bank and cash is not misstated.
