Exam 23: Audit of Cash Balances

A partial-period bank statement and the related canceled checks, duplicate deposit slips, and other documents included in bank statements, mailed by the bank directly to the CPA firm's office, is called:

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

Which of the following errors would be least likely to be discovered during the audit of the acquisitions and payments cycle?

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

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

The transfer of money from one bank account to another and improperly recording the transfer so that the amount is recorded as an asset in both banks is referred to as kiting.

When auditing the general cash account, receipt of a standard bank confirmation is the starting point for verifying the company's general cash account balance.

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 bank, except for deposits in transit, checks outstanding, and other reconciling items. The information needed to complete the tests of the reconciliation are provided by the:

Tests of the payroll bank reconciliation usually require considerable time if there is an imprest payroll account in use.

Auditors tests of the client's bank reconciliation is done to verify whether the client's recorded bank balance is the same amount as the actual cash in the bank. Which of the following would not explain a difference between the company's cash balance and the bank's balance for the client?

One disadvantage of using an imprest bank account is the increased time needed to reconcile bank accounts.

While petty cash is often immaterial in amount, the auditor verifies the account primarily because it is easy to do so.