5 Written questions
4 Matching questions
- Electronic data interchange EDI (384)
- To gather evidence regarding the balance per bank on a bank reconciliation, an auditor could examine all of the following except: A-Cutoff bank statement. B-Year-end bank statement. C-Bank confirmation. D-General ledger.
- A company owns a large amount of debt securities that pay interest twice a year - August 1 and February 1. On the financial statements the company accrued the 5 months of interest it was due as interest receivable. The auditor should: A-Require the accrual be reversed since the interest has not yet been paid. B-Confirm the interest accrual with the security issuer. C-Require the accrual be reversed since the company could sell the security before interest has been paid. D-Verify the company owns the security, check the accuracy of the accrual, and require no adjustment.
- A security owned by a company is from another company that recently declared bankruptcy. Which of the following is the auditor's primary concern with the investment? A-Existence B-Presentation C-Completeness D-Valuation
- a D-Valuation
- b ...
- c D-General ledger.
- d D-Verify the company owns the security, check the accuracy of the accrual, and require no adjustment.
5 Multiple choice questions
- C-The Controller should have control of accounting functions and the Treasurer should have control of cash receipt functions.
- A-Controls are thought to be weak.
- B-Inherent risk
5 True/False questions
A local gas station has one clerk that accepts cash payments for gas and rings them up on the cash register. Which of the following would be the best control to provide assurance that the cashier isn't keeping some of the cash?A-Count all cash before and after the shift and compare it to cash register totals.B-Require that each customer be given a receipt of their purchase.C-Compare cash register totals to a total that is automatically generated by each gas pump.D-Require that each employees have a separate cash drawer that only they use. → C-The Controller should have control of accounting functions and the Treasurer should have control of cash receipt functions.
Which of the following is correct concerning cash confirmation requests? A-They ask for information on kiting activities. B-They should be sent quarterly by the auditors to financial institutions the client has accounts with. C-They should be sent by the client to financial institutions the client has accounts with. D-They may be sent electronically or non-electronically. → C-Loans payable
Which of the following is most likely to indicate fraud? A-Several overpayments are made for goods received from a supplier. B-The year end cash balance does not include cash in transit to the company at year-end. C-A check received after year end was inadvertently recorded as if received before year-end. D-A documented loan to an officer of the company → A-Several overpayments are made for goods received from a supplier.
Dividend record book (410) → ...
Voucher (386) → Financial instruments that "derive" their value from other financial instruments, underlying assets, or indexes. Examples are options, forward contracts, and futures contracts.