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5 Written Questions

3 Matching Questions

  1. Electronic funds transfer ETF (384)
  2. 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
  3. 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.
  1. a A-Controls are thought to be weak.
  2. b C-Loans payable
  3. c ...

5 Multiple Choice Questions

  1. B-Kiting.
  2. ...
  3. D-A bank transfer schedule
  4. B-Inherent risk
  5. A-An unrecorded (on the books) deposit made at the beginning of the month; the amount was withdrawn late in the month, again with no book entry.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

  1. Cutoff bank statement (400)...

          

  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.B-Checks dated prior to year-end to the outstanding checks listed on the year-end bank reconciliation.

          

  3. Lockbox (384)Financial instruments that "derive" their value from other financial instruments, underlying assets, or indexes. Examples are options, forward contracts, and futures contracts.

          

  4. The accounting functions and the cash receipts functions should be handled by which department(s)? A-Both functions should be under the control of the company Treasurer B-Both functions should be under the control of the company Controller C-The Controller should have control of accounting functions and the Treasurer should have control of cash receipt functions. D-The Treasurer should have control of accounting functions and the Controller should have control of cash receipt functions.C-The Controller should have control of accounting functions and the Treasurer should have control of cash receipt functions.

          

  5. 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.

          

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