Exam 17: Audit of Cash Balances

What audit objective is associated with the comparison of disbursement and receipt information on a bank transfer schedule to the cash disbursements and cash receipts journals?

There is a greater risk of defalcation for cash than for other types of assets because

What is the best way to prevent potential alteration, deletion, or addition of cancelled cheques, duplicate deposit slips, or other documents provided with the bank statement?

Which of the following audit tests pertains to the accuracy assertion?

What is an important benefit of independent preparation of bank reconciliations?

After testing the bank reconciliation and inspecting the cutoff bank statement received from the bank, the auditor has determined that there are two outstanding cheques from the list on the bank reconciliation that have still not cleared the bank. The auditor's next step should be to

During his examination of a January 19, 2015 cutoff bank statement, an auditor noticed that the majority of cheques listed as outstanding at December 31, 2014 had not cleared the bank. This would indicate

Certain types of misstatements that affect cash may be detected in the audit of tests of controls. Which of the following misstatements would be detected in the audit of the sales and collection cycle?

The audit procedure that requires the auditor to record the last cheque number used on the last day of the year and subsequently trace to the outstanding cheques and the cash disbursements journal is performed to satisfy the audit objective of

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

After the bank confirmation has been received by the auditor, the auditor should

The auditor uses a proof of cash to determine whether

When are short-term investments that are readily converted to cash included in the cash account in the financial statements?

On a bank transfer schedule, if a cash disbursement was recorded in the current fiscal year and the receipt in the subsequent fiscal year, this might be

The reason for testing the client's bank reconciliation is to verify whether the client's recorded bank balance is the same amount as the actual cash in the bank, except for deposits in transit, cheques outstanding, and other reconciling items. The information needed to complete the tests of the reconciliation are provided by the

Which of the following statements best describes the position of cash on the balance sheet at most organizations that utilize effective cash management practices?

A) Many auditors prove the subsequent period bank statement if a cutoff statement is not received directly from the bank. Discuss the purpose of proving the subsequent period statement, and explain the audit procedures performed during the proof of cash. B) Discuss the circumstances in which an auditor would prepare a proof of cash.

What type of audit test is a proof of cash?

Which of the following situations would indicate a susceptibility to fraud that pertains to theft of cash?

A significant part of the total audit that relates to cash is the audit of