NAME

Question types


Start with


Question limit

of 29 available terms

Advertisement Upgrade to remove ads
Print test

5 Written questions

5 Matching questions

  1. 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.
  2. 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an auditor in detecting: A-An unrecorded (on the books) deposit made at the beginning of the month; the amount was withdrawn late in the month, again with no book entry.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.
  3. 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
  4. Lockbox (384)
  5. 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 risk
  1. a ...
  2. b A-An unrecorded (on the books) deposit made at the beginning of the month; the amount was withdrawn late in the month, again with no book entry.
  3. c D-A bank transfer schedule
  4. d B-Inherent risk
  5. e B-Kiting.

5 Multiple choice questions

  1. C-Loans payable
  2. ...
  3. C-The Controller should have control of accounting functions and the Treasurer should have control of cash receipt functions.
  4. A-Controls are thought to be weak.
  5. ...

5 True/False questions

  1. Standard confirmation form (396)...

          

  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. 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.B-Inherent risk

          

  4. Voucher register (387)Financial instruments that "derive" their value from other financial instruments, underlying assets, or indexes. Examples are options, forward contracts, and futures contracts.

          

  5. 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.