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5 Written questions

4 Matching questions

  1. A four column bank reconciliation ("proof of cash") will generally assist an auditor in detecting: A-An unrecorded (on the books) deposit made at the beginning of the month; the amount was withdrawn late in the month, again with no book entry. B-A second payment of a liability that had already been paid in full. C-A check written and recorded on the books for $2,000, not $200 the amount of the actual liability. D-An embezzlement of a portion of the company's petty cash.
  2. A primary use by the auditor of a bank cutoff statement is to compare: A-Bank service charges on the cutoff statement to deposits in the cash receipts journal. B-Checks dated prior to year-end to the outstanding checks listed on the year-end bank reconciliation. C-Deposits listed on the cutoff statement to disbursements in the cash disbursements journal. D-Checks dated subsequent to year-end to the outstanding checks listed on the year-end bank reconciliation.
  3. Lockbox (384)
  4. Derivitives (409)
  1. a A-An unrecorded (on the books) deposit made at the beginning of the month; the amount was withdrawn late in the month, again with no book entry.
  2. b B-Checks dated prior to year-end to the outstanding checks listed on the year-end bank reconciliation.
  3. c ...
  4. d Financial instruments that "derive" their value from other financial instruments, underlying assets, or indexes. Examples are options, forward contracts, and futures contracts.

5 Multiple choice questions

  1. ...
  2. ...
  3. D-Verify the company owns the security, check the accuracy of the accrual, and require no adjustment.
  4. A bank statement covering a specified number of business days (usually 7-10) after the client's balance sheet date. Auditors use this statment to determin the checks issued on or before the blance sheet date and paid during the cutoff period were listed as outstanding on the year-end bank reconciliation. Another use is to determin the reconciling items shown on the year-end bank reconciliation have cleared the bank within a reasonable amout of time.
  5. ...

5 True/False questions

  1. Dividend record book (410)A reference book published monthly by investment advisory services reporting detailed information concerning all listed and many unlisted securities; includes dividend dates and amounts, current prices of securities, and other condensed financial data.

          

  2. Broker's advice (410)Financial instruments that "derive" their value from other financial instruments, underlying assets, or indexes. Examples are options, forward contracts, and futures contracts.

          

  3. What of the following is the risk that is of most concern to auditors when auditing cash?A-Detective risk B-Inherent risk C-Adjunct risk D-Nonsampling riskB-Inherent risk

          

  4. It is most likely to be efficient to test the controls over financial investments when:A-Controls are thought to be weak. B-Substantive tests may be performed. C-Analytical procedures are possible. D-The company trades or holds a large number of securities.A-Controls are thought to be weak.

          

  5. Proof of Cash (399)Financial instruments that "derive" their value from other financial instruments, underlying assets, or indexes. Examples are options, forward contracts, and futures contracts.

          

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