Why is there a greater emphasis on the detection of fraudin tests of details of cash balances than for other balance sheet accounts? Give two specificexamples that demonstrate how this emphasis affects the auditor’s evidence accumulation in auditing year-end cash.

Q: The following data was gathered during one of the recent audits of Cash Disbursement Section. One of…

A: Answer- Option 4 -Criteria, Cause, Effect, Condition Audit finding are categorized using 4 C's of…

Q: Which of the following internal controls is a common detective control over cash and cash…

A: Internal control  is implemented, to maintain effectiveness, efficiency, ,follow the policies,…

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

A:

Q: Which audit claims will be met by the audit method of cash count and bank verification requests

A: introduction: If the management's financial statements have any inaccuracies or frauds, the only…

Q: he following are commonly performed tests of controls and substantive tests of transactions audit…

A:

Q: Which of the following is not a basic characteristic of a system of cash control? Group of answer…

A: Every business organizations are required to implement the proper controls so as to avoid the theft…

Q: -Identify the external source of audit evidences to reconcile the imbalance in the cash book and…

A: External source of audit evidences are collected by the auditor outside the client's organization.

Q: Which procedure is an auditor most likely to use to detect a check outstanding at year-end that was…

A: answer are as follows

Q: The following data was gathered during one of the recent audits of Cash Disbursement Section. One of…

A: Answer: I. Authority over the disbursement of funds should only be delegated to individuals whose…

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: Auditors are auditing the cash receipts for Great Wall Corporation. For each audit procedure…

A: Audit Procedure: Audit Procedures are actions conducted by auditors to acquire all the information…

Q: Which of the following is one of the better auditing techniques to detect kiting?(1) Review…

A: (3) Prepare year-end bank reconciliations

Q: Preparing the bank recociliation is consifered to be an important step in interna; control process…

A: Bank reconciliation refers to the process of reconciling the balances of the accounting records of…

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 is a preventive control?a. Reconciliation of a bank account.b. Recalculation…

A: Definition: Prevention control: Prevention control is an activity undertaken to avoid or prevent the…

Q: a. Analyzing details of large cash deposits around year end. b. Comparing customer remittance…

A: In a kiting scheme, cash is created using the lag between the time a check is deposited and the time…

Q: Which of the following audit procedures is least effective for detecting unrecorded long-term debt…

A: Lets understand the basics. Management needs to perform an audit procedure in order to express an…

Q: hich of the following is correct regarding the result of a cash disbursement cut-off rendered by an…

A: Cut-off arrangements are the precautions taken by the business entity to keep the business…

Q: Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank…

A: Bank Reconciliation Statement is a statement document that reconciles the difference in the cash…

Q: The auditor would like to determine any cash restriction. Which of the following audit procedures…

A: Audit Procedure: In the context of financial statements, audit procedures are the steps taken by…

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: 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: Which of the following are audit evidences? a) Inspecting non-current/fixed assets b) An item of…

A: Audit Evidence: It refers to the information that the auditor uses in arriving at a conclusion on…

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: The following data was gathered during one of the recent audits of Cash Disbursement Section. One of…

A: I.  Authority over the disbursement of funds should only be delegated to individuals whose…

Q: he following data was gathered during one of the recent audits of Cash Disbursement Section. One of…

A: solution : Authority over the disbursement of funds should only be delegated to individuals whose…

Q: which audit assertions the audit procedure of cash count and bank confirmation requests will meet?

A: The financial statements prepared by the management may contain misstatements, and any other…

Q: Why are auditors usually less concerned about the client’s cashreceipts cutoff than the cutoff for…

A: Auditors usually less concerned about the client’s cash receipts cu toff than the cu toff for sales

Q: auditors responsible for searching for fraud while reviewing a public companys quarterly financial…

A: Answer: No an auditor is not responsible for searching for fraud while reviewing a public company.

Q: Which of the following circumstances would most likely cause an audit team to performextended…

A: Audit procedures: These are the methods, techniques, and processes that are performed by the auditor…

Q: When auditors perform the bank reconciliation test, what would be the appropriate audit procedure…

A: Auditing procedures of Bank Reconciliation Bank reconciliation is one of the important part in the…

Q: risk over the cash disbursement function, the auditor notes a delay in recording disbursements. This…

A: when talking about control risk it is the risk that a material misstatement could occur this may be…

Q: 1 essential part of the auditor's responsibility in auditing cash receipts is to identify…

A: Cash receipt refers to the evidence of purchase issued when the buyer of goods has paid in cash and…

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

A: Definition:

Q: After completing a horizontal and vertical analysis of the Balance Sheet and Income Statement.  It…

A: The answer is stated below:

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: fter completing a horizontal and vertical analysis of the Balance Sheet and Income Statement.…

A: Balance Sheet and Income Statement of the company: These are the financial statement of the company…

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: il: As the assessed level of control risk increases, the acceptable level of detection risk…

A: As the assessed level of control risk increases, the acceptable level of detection risk decreases,…

Q: In preparing for the audit of cash, the auditors perform analytical procedures concerning cash…

A:

Q: For each case, state the type of audit opinion which should be expressed and provide an explanation…

A: Audit Opinion While conducting the Auditing the management of the business submit their financial…

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: A common audit procedure to verify the existence assertion of cash account balances is: a.…

A: Existence assertion is the assertion that the assets and the liabilities which is appearing the…

Q: What audit procedures would you use to determine that the cash balances actually exist at the…

A: Audit Procedure: In the context of financial statements, audit procedures are the steps taken by…

Q: Which of the following internal control activities most likely would deter lapping of collections…

A: Internal Control: Internal control is a mechanism or procedure that the company implements so that…

Q: Explain the relationships among the initial assessed controlrisk, tests of controls and substantive…

A: The cash account is affected by the transaction in most of the cycles. Since there is a relationship…

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.

Q: In the audit of a client with a fiscal year ending December 31, the CPAs obtain a January 10 bank…

A: A bank reconciliation statement refers to the statement that matches the balance as per the bank…

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.