5 Written questions
3 Matching questions
- Voucher register (387)
- An auditor examining check disbursements discovered a missing check number. Upon inquiry to the person responsible for disbursements and reconciliation of the cash account, she is told that the check number is missing because the check was voided. What is the auditor's next step? A-Prepare a bank transfer schedule at to identify the check. B-Examine the bank confirmation to determine whether the check cleared. C-Since the person responsible for disbursements also reconciles the account, no additional procedures are necessary. D-Examine the voided checks file to determine whether the check is in the file.
- 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.
- a D-Examine the voided checks file to determine whether the check is in the file.
- b A-Controls are thought to be weak.
- c ...
5 Multiple choice questions
- A notification sent by a stockbrokerage firm to a customer reporting the terms of a purchase or sale of securities.
- A-An unrecorded (on the books) deposit made at the beginning of the month; the amount was withdrawn late in the month, again with no book entry.
- C-Loans payable
5 True/False questions
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 → C-Loans payable
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 → D-Verify the company owns the security, check the accuracy of the accrual, and require no adjustment.
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.
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.
Voucher (386) → ...