5 Written questions
4 Matching questions
- 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.
- Lockbox (384)
- 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
- Derivitives (409)
- a D-Valuation
- b C-The Controller should have control of accounting functions and the Treasurer should have control of cash receipt functions.
- c Financial instruments that "derive" their value from other financial instruments, underlying assets, or indexes. Examples are options, forward contracts, and futures contracts.
- d ...
5 Multiple choice questions
- D-They may be sent electronically or non-electronically.
- A-Several overpayments are made for goods received from a supplier.
- D-Examine the voided checks file to determine whether the check is in the file.
- A-An unrecorded (on the books) deposit made at the beginning of the month; the amount was withdrawn late in the month, again with no book entry.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
Electronic funds transfer ETF (384) → ...
Jones embezzled $50,000 from his company's account in Bank A. At year-end he hid the shortage by making a deposit on December 31 in Bank A, drawn on Bank B. He has not recorded the transaction on the books. This is an example of: A-Lapping. B-Kiting. C-Effective cash management. D-Related party transactions. → D-General ledger.
Voucher register (387) → ...
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. → D-Valuation
Check Clearing for the 21st Centry Act "Check 21 Act" (401) → This act allows financial institutions to creat and process electronic "substitute checks" in place of customer written hard-copy checks. The purpose of this act is to drease the time for check clearing.