ACCT 5100 CHAPTER 30-MCQ
If a bank does not respond to a bank confirmation request, an auditor may:
Perform alternative procedures
Send a second request Ask the client to communicate with the bank to ask them to complete and return the confirmation
a. No Yes Yes
b. No No Yes
c. Yes No Yes
d. Yes Yes No
The most important controls for petty cash relate to:
The use of a separate bank account The use of an imprest fund
a. Yes Yes
b. No No
c. Yes No
d. No Yes
Which of the following cash transfers results in a misstatement of cash at December 31, 2007?
Bank Transfer Schedule
Recorded Disbursement Recorded Date
transfer paid by transfer received
in books by bank in books by bank
a. 12/31/07 1/04/08 12/31/07 12/31/07
b. 1/04/08 1/05/08 12/31/07 1/04/08
c. 12/31/07 1/05/08 12/31/07 1/04/08
d. 1/04/08 1/11/08 1/04/08 1/04/08
_____ is cash stolen from an organization before it is recorded in the accounting records.
a. Theft
b. Cash larceny
c. Skimming
d. Floating
The most important balance-related audit objectives in the audit of cash include all but which of the following?
a. Existence
b. Accuracy
c. Completeness
d. Occurrence
During his examination of a January 19, 2008 cutoff bank statement, an auditor noticed that the majority of checks listed as outstanding at December 31, 2007, had not cleared the bank. This would indicate:
a. a high probability of kiting.
b. a high probability of lapping.
c. that the 2007 cash disbursements records had been closed prior to December 31, 2007.
d. that the 2007 cash disbursements records had been held open past December 31, 2007.