5 Written questions
4 Matching questions
- Broker's advice (410)
- Of the following, which procedure or document is most effective for detecting kiting? A-A bank cutoff statement B-A bank reconciliation C-A bank kiting statement D-A bank transfer schedule
- 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.
- Lockbox (384)
- a ...
- b A notification sent by a stockbrokerage firm to a customer reporting the terms of a purchase or sale of securities.
- c D-A bank transfer schedule
- d D-General ledger.
5 Multiple choice questions
- C-Compare cash register totals to a total that is automatically generated by each gas pump.
- A-An unrecorded (on the books) deposit made at the beginning of the month; the amount was withdrawn late in the month, again with no book entry.
5 True/False questions
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. → D-They may be sent electronically or non-electronically.
Window dressing (402) → Financial instruments that "derive" their value from other financial instruments, underlying assets, or indexes. Examples are options, forward contracts, and futures contracts.
Which of the following is confirmed on the standard form used for cash balances at financial institution? A-Factored accounts receivable B-Loss contingencies C-Loans payable D-Safe deposit boxes controlled by the entity → C-Loans payable
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.
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. → D-Verify the company owns the security, check the accuracy of the accrual, and require no adjustment.