Discuss the audit considerations arising from a bank’s extensive dependence on technology-based systems to process transactions. Cite specific example to prove your point.
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Discuss the audit considerations arising from a bank’s extensive dependence on technology-based systems to process transactions. Cite specific example to prove your point.
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- Which of the following control objectives would be least likely be considered by the internal auditors in drafting the audit procedures for bank accounts and banking arrangement activities under the Acquire-to-Retire process? To ensure that fund transfers and automated methods of effecting banking transactions are valid and verified, in the best interests of the organization, and authorized. A. To ensure that banking charges are effectively monitored and minimized. B. To ensure that all income from bank is recorded without delay. C.To ensure that all banking transactions are bona fide, accurate and authorized whenever necessary. D. To ensure that overdraft set facilities are authorized and correctly operated within the limits defined by management and the organization's bankers. E. To ensure that the potential for staff malpractice and fraud are minimized. F. To ensure that banking arrangements and facilities are sufficient, appropriate and adequate for the business.Bank confirmations are critical to the cash audit. What information does the auditor obtain by sending bank confirmations? Explain the different types of bank confirmations and what assertions each type addresses. How is it determined which is the best bank confirmation type to use?Bank confirmations are critical to the cash audit. What information does the auditor obtain by sending bank confirmations? Explain the different types of bank confirmations and what assertions each type addresses. How do you determine which is the best bank confirmation type to use?
- Summarize common internal controls over cash receipts and cash disbursements. Assess the purpose of a bank confirmation and why bank confirmations are an important piece of audit evidence. What are some errors and frauds that can occur in the revenue cycle? Review the process of confirming accounts receivable balances. Why is it important for auditors to understand revenue recognition rules?Which of the following substantive audit procedures is most likely to be performed by the auditor to gather evidence in support of the balance per bank? a. confirm directly with bank b. compare to general ledger c. trace to cash receipts journal d. trace items on the cutoff bank statement to bank reconciliation e. all of the choicesShow how the role of governance structures, internal controls and compliance policies help in the prevention of financial fraud. NB: Site refrences
- How does the adoption of blockchain technology impact financial accounting, auditing processes, and cybersecurity measures within the financial sector, and what are the potential benefits and risks associated with this technological shiftExplain briefly what are the different types of operational risks affecting the banking institutions? Explain the Operational Risk Management (ORM) process and critically evaluate how ORM process would support to improve the operational risk management process of a bank?Explain operational risks faced by banks operating in the financial sector, and discuss how a risk management tool can be used to mitigate such risks.
- The use of a bank account addresses which objective of internal control? Group of answer choices safeguard assets ensure reliability of accounting data promote operational efficiency encourage adherence to prescribed managerial policiesHow can advancements in technology, such as blockchain and artificial intelligence, revolutionize the field of auditing and enhance the accuracy, efficiency, and security of financial audits in contemporary accounting practices?Which of the following control objectives would be least likely be considered by the internal auditors in drafting the audit procedures for bank accounts and banking arrangement activities under the Acquire-to-Retire process? Group of answer choices To ensure that fund transfers and automated methods of effecting banking transactions are valid and verified, in the best interests of the organization, and authorized. To ensure that all banking transactions are bona fide, accurate and authorized whenever necessary. To ensure that all income from bank is recorded without delay. To ensure that banking charges are effectively monitored and minimized. To ensure that the potential for staff malpractice and fraud are minimized. To ensure that banking arrangements and facilities are sufficient, appropriate and adequate for the business. To ensure that overdraft set facilities are authorized and correctly operated within the limits defined by management and the organization's…
