Question 1

In an effort to satisfy the completeness objective,the auditor could perform which of the following test of details of balance procedures?

Accepted Answer

A) Trace the book balance on the reconciliation to the general ledger. 
B) Trace outstanding checks to subsequent period bank statements. 
C) Perform a four-column proof of cash. 
D) Review financial statements to make sure that material savings accounts and certificates of deposit are disclosed separately. 
A) Trace the book balance on the reconciliation to the general ledger. 
B) Trace outstanding checks to subsequent period bank statements. 
C) Perform a four-column proof of cash. 
D) Review financial statements to make sure that material savings accounts and certificates of deposit are disclosed separately.

Question 2

Auditing guidance is provided for auditing accounting estimates specifically for fair values estimates as considerable auditor judgment is involved.

Accepted Answer

A) True 
 B)False

Question 3

When auditing financial instruments,interest income and dividends can be recomputed and compared to a public source.

Accepted Answer

A) True 
 B)False

Question 4

A proof of cash is not an effective procedure for identifying which of the following types of misstatements?

Accepted Answer

A) All recorded disbursements were paid by the bank. 
B) All recorded cash receipts were deposited. 
C) All amounts that were paid by the bank were recorded. 
D) Some checks were written for incorrect amounts. 
A) All recorded disbursements were paid by the bank. 
B) All recorded cash receipts were deposited. 
C) All amounts that were paid by the bank were recorded. 
D) Some checks were written for incorrect amounts.

Question 5

Ordinarily,all deposits-in-transit listed on the year-end bank reconciliation should appear as deposits on the cutoff bank statement.

Accepted Answer

A) True 
 B)False

Question 6

An imprest petty cash fund

Accepted Answer

A) is a bank account. 
B) is used for large,unusual purchases. 
C) is usually reimbursed at least once a week for good internal control. 
D) is being replaced by pre-approved purchase cards in many companies. 
A) is a bank account. 
B) is used for large,unusual purchases. 
C) is usually reimbursed at least once a week for good internal control. 
D) is being replaced by pre-approved purchase cards in many companies.

Question 7

Which of the following would normally be discovered as part of the audit of the bank reconciliation?

Accepted Answer

A) failure to bill a customer 
B) failure to include a deposit in transit on the bank reconciliation 
C) duplicate payment of a vendor's invoice 
D) payment to an employee for more hours than she worked 
A) failure to bill a customer 
B) failure to include a deposit in transit on the bank reconciliation 
C) duplicate payment of a vendor's invoice 
D) payment to an employee for more hours than she worked

Question 8

A proof of cash disbursements is not effective for discovering checks written for an improper amount,fraudulent checks,or misstatements in which the dollar amount appearing in the cash disbursements records is incorrect.

Accepted Answer

A) True 
 B)False

Question 9

Assessing internal controls related to financial instruments may be necessary in order to reduce audit risk to an acceptable level.

Accepted Answer

A) True 
 B)False

In an effort to satisfy the completeness objective,the auditor could perform which of the following test of details of balance procedures?

Auditing guidance is provided for auditing accounting estimates specifically for fair values estimates as considerable auditor judgment is involved.

When auditing financial instruments,interest income and dividends can be recomputed and compared to a public source.

A proof of cash is not an effective procedure for identifying which of the following types of misstatements?

Ordinarily,all deposits-in-transit listed on the year-end bank reconciliation should appear as deposits on the cutoff bank statement.

An imprest petty cash fund

Which of the following would normally be discovered as part of the audit of the bank reconciliation?

A proof of cash disbursements is not effective for discovering checks written for an improper amount,fraudulent checks,or misstatements in which the dollar amount appearing in the cash disbursements records is incorrect.

Assessing internal controls related to financial instruments may be necessary in order to reduce audit risk to an acceptable level.

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters

Exam 23: Audit of Cash and Financial Instruments

In an effort to satisfy the completeness objective,the auditor could perform which of the following test of details of balance procedures?

Auditing guidance is provided for auditing accounting estimates specifically for fair values estimates as considerable auditor judgment is involved.

When auditing financial instruments,interest income and dividends can be recomputed and compared to a public source.

A proof of cash is not an effective procedure for identifying which of the following types of misstatements?

Ordinarily,all deposits-in-transit listed on the year-end bank reconciliation should appear as deposits on the cutoff bank statement.

An imprest petty cash fund

Which of the following would normally be discovered as part of the audit of the bank reconciliation?

A proof of cash disbursements is not effective for discovering checks written for an improper amount,fraudulent checks,or misstatements in which the dollar amount appearing in the cash disbursements records is incorrect.

Assessing internal controls related to financial instruments may be necessary in order to reduce audit risk to an acceptable level.

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters