Question 1

Explain the purpose of testing the client's bank reconciliation, and discuss the major audit procedures involved.

Accepted Answer

Auditors test the bank reconciliation to

Question 2

Which of the following is an accurate statement regarding cash?

Accepted Answer

A)  The amount of cash flowing into and out of the cash account is often larger than that for any other account in the financial statements. 
B)  The susceptibility of cash to embezzlement is greater than that for other types of assets. 
C)  Auditors must verify whether recorded cash in the general ledger correctly reflects all cash transactions that took place during the year. 
D)  All of the above are accurate statements. 
A)  The amount of cash flowing into and out of the cash account is often larger than that for any other account in the financial statements. 
B)  The susceptibility of cash to embezzlement is greater than that for other types of assets. 
C)  Auditors must verify whether recorded cash in the general ledger correctly reflects all cash transactions that took place during the year. 
D)  All of the above are accurate statements.

Question 3

Which of the following is likely to be detected as part of the audit of the bank reconciliation?

Accepted Answer

A)  failure to bill a customer 
B)  duplicate payment of a vendor invoice 
C)  cash received by the client after year-end, but included in cash receipts in the current year 
D)  an embezzlement of cash by intercepting cash receipts from customers before they are recorded 
A)  failure to bill a customer 
B)  duplicate payment of a vendor invoice 
C)  cash received by the client after year-end, but included in cash receipts in the current year 
D)  an embezzlement of cash by intercepting cash receipts from customers before they are recorded

Question 4

Describe each of the major types of cash accounts maintained by business entities.

Accepted Answer

• General cash account. This is the foca

Question 5

As part of their internal control procedures, management needs to have procedures in place to properly classify financial instruments as trading, available-for-sale, or held-to-maturity, based on

Accepted Answer

A)  cost. 
B)  intent. 
C)  maturity. 
D)  probable future gain or loss. 
A)  cost. 
B)  intent. 
C)  maturity. 
D)  probable future gain or loss.

Question 6

The evidence accumulated for cash balances depends heavily on the results of tests performed in the other major transaction cycles.

Accepted Answer

A) True 
 B)False

Explain the purpose of testing the client's bank reconciliation, and discuss the major audit procedures involved.

Which of the following is an accurate statement regarding cash?

Which of the following is likely to be detected as part of the audit of the bank reconciliation?

Describe each of the major types of cash accounts maintained by business entities.

As part of their internal control procedures, management needs to have procedures in place to properly classify financial instruments as trading, available-for-sale, or held-to-maturity, based on

The evidence accumulated for cash balances depends heavily on the results of tests performed in the other major transaction cycles.

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 Materiality

Assessing the Risk of Material Misstatement

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, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

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

Explain the purpose of testing the client's bank reconciliation, and discuss the major audit procedures involved.

Which of the following is an accurate statement regarding cash?

Which of the following is likely to be detected as part of the audit of the bank reconciliation?

Describe each of the major types of cash accounts maintained by business entities.

As part of their internal control procedures, management needs to have procedures in place to properly classify financial instruments as trading, available-for-sale, or held-to-maturity, based on

The evidence accumulated for cash balances depends heavily on the results of tests performed in the other major transaction cycles.

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 Materiality

Assessing the Risk of Material Misstatement

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, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

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