1 essential part of the auditor's responsibility in auditing cash receipts is to identify deficiencies in internal dit procedures in auditing cash receipts that are designed primarily for the discovery of fraud.

Q: Frauds are often detected through the receipt of an anonymous tip, by management review, by internal…

A: Auditing is the process of checking and verifying books of accounts of the business in order to…

Q: A financial statement auditor concludes that internal controls over cash are not functioning as…

A:

Q: Cash receipts from sales on account have been misappropriated. Which of the following acts would…

A: An auditor is an individual approved to survey and check the precision of budgetary records and…

Q: Statement 1: The proper functioning of a bank's authorization controls is particularly important in…

A: During audit, auditor is required to performe procedures to obtain reasonable assurance about the…

Q: ect the control objective being tested by placing the correct letter in the blank. A. Existence B.…

A: Solution:- Given, Auditors are auditing the cash receipts for Great Wall Corporation. For each audit…

Q: ccounting 1. The auditor spends significant time auditing cash discounts and sales returns because…

A: Audit and duties of auditor : Audit is the internal and external check of the financial statements,…

Q: __________are the systems used by an organization to manage risk and diminish the occurrence of…

A: Introduction: Fraud: Fraud is a intentional deception resulting loss to other party. Fraud can be of…

Q: Why is there a greater emphasis on the detection of fraudin tests of details of cash balances than…

A:

Q: Which of the following is the best audit procedure for the detection of lapping?   a. Comparison of…

A: Lapping means deliberately misappropriation of the funds by the employee of the organization.  When…

Q: Which of the following control activities would best protect against the preparation ofimproper or…

A: Cash Budget: This budget gives an estimation of all the cash inflows and outflows of a business for…

Q: Evidence comes in various types and has different degrees of reliability. Below are some pairs of…

A: The auditors are professional who possesses accounting, auditing, and taxation expertise. The…

Q: Forensic Accounting: Assurance Engagement 1: Expenditure Analysis. Expenditureanalysis is used when…

A: Revenues from other areas include the leftover profits accounted in other (unknown) revenue heads

Q: The separation of operational responsibility from record keeping is meant to prevent different types…

A: The management of the company is the main responsible for preparing the financial statements which…

Q: Which among the following types of audit evidence can be considered the most reliable? a. Verbal…

A: Please see the next step for the solution

Q: List the transaction-related audit objectives for the verificationof cash receipts. For each…

A: Audit objectives for verification of cash receipts are- Recorded sales Database management…

Q: When auditing the cash account, the auditor traces the cash receipts, which are recorded on the cash…

A: Auditing refers to the process of physically evaluating and inspecting all the financial information…

Q: Use audit software to foot and cross foot the cash disbursements journal and trace the balance to…

A: Audit software are used to check the quality, to check the adherence to rules and regulations of the…

Q: paring the bank reconciliation. 2. Examine vendors’ invoices and other s

A: The auditors verify the fairness of financial statements by collecting audit evidence by following…

Q: What is the purpose of a bank confirmation and why are bank confirmations an important piece of…

A: The revenue cycle is defined as the accounting process by which a corporation keeps track of the…

Q: In an audit of cash receipts, fraud detection is often a primary focus. It's up to the auditor to…

A: In this audit, the auditor focuses on cash since it is the most liquid asset of the organization.…

Q: Petty Cash is easily misappropriated if business processes and internal controls are not established…

A: Petty cash means the cash allocated to meet small day to day expenses of the business. If proper…

Q: 2. Whom should the auditors contact when they suspect a fraud? A. Either the senior management or…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: Which of the following internal controls is the most effective in preventing employees from using…

A: Internal controls are those procedures which are implemented for achievement of objectives of…

Q: Which of the following procedures would most likely be performed during planning?a. Surprise…

A: Identifying related parties would most likely be performed during planning.

Q: In rendering cash count the auditor observed that one of the items being presented by the custodian…

A: Audit refers to the examination as well as investigation of the accounting records and the financial…

Q: Which of the following control objectives would be least likely be considered by the internal…

A: Option 1 This will be considered by the auditor in drafting the audit procedures as it can lead to…

Q: A key internal control in the sales and collection cycle is the separation of duties between cash…

A: Internal control: Internal control refers to the process of checking by the management that the…

Q: Indicate whether the statement is true or false. Internal control procedures should be designed to…

A: In accounting and auditing perspective, Internal control means fulfilling organisational objectives…

Q: Explain auditors’ responsibility for fraud risk assessment and define and explain the differences…

A: Fraud is an activity in a social environment with serious economic, corporate, and individual…

Q: true/false True or False: Control over the receipt of cash sales is best achieved when two or more…

A: So it can cross-check, it is part of control procedures.

Q: Counting cash and verifying bank reconciliation are basic substantive procedures and are not…

A: Counting cash and verifying bank reconciliation are basic substantive procedures andsame ia required…

Q: The following are deficiencies in internal controls over cash. For each deficiency indicate what…

A: “Since you have posted a question with multiple sub parts, we will solve first 3 sub parts for you.…

Q: Explain why auditors usually emphasize the detection of fraud inthe audit of cash receipts. Is this…

A: The auditor focuses on cash as it is the very high liquid asset of the company, hence there is a…

Q: At Emerson Company, one bookkeeper prepares the cash deposits while the other bookkeeper enters the…

A: Segregation of Duties is a one of the methods of sustainable risk management and internal controls…

Q: Identify important internal control activities present in a properly designed system to mitigate the…

A: Internal Control: A company’s Internal Control ensures that the operational efficiency of a company…

Q: Recognize when to extend audittests of the general cash accountto test further for material fraud.

A: Definition:

Q: You are part of the audit team that is auditing Hillsburg Hardware Co. and you have been assigned to…

A: A test of controls is an audit procedure to test the effectiveness of a control used by a client…

Q: Explain why, in verifying bank reconciliations, most auditorsemphasize the possibility of a…

A: Auditing refers to an independent examination of financial information of any organization. The sole…

Q: ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements,…

A: As auditor there are two types of auditing one can be engaged in the practice, internal and external…

Q: $1: In obtaining an understanding of the internal control policies and procedures, the auditor noted…

A: Internal control is a part of auditing done from the part of an organization to keep a control over…

Q: (i) Differentiate between the audit strategy and the audit plan.

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What internal control procedure ( s ) would provide protection against the following threats ? An…

A: Internal control: this is a procedure in auditing which helps the entity in maintaining the…

Q: Which of the following control objectives would be least likely be considered by the internal…

A: from the following given above options: OPTION(4)  would be likely considered by the internal…

Q: amount of cash is accurately recorded on the financial statements. All of the following are…

A: an audit, independent examination of the financial statement of an entity. there are mainly three…

Q: Which of the following control objectives would be least likely be considered by the internal…

A: Evaluation of the group of choices is to be done to find out which choice is not relevant for the…

Q: List at least 5 control measures per principle of control activities which an organization may…

A: Internal control refers to the mechanism, rules and procedures of the company for preventing fraud,…

Q: In testing controls over cash disbursements, an auditor most likely would determine that the person…

A: The question is related to Auditingbof Cash disbursement.

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.