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EBK AUDITING AND ASSURANCE SERVICES
16th Edition
ISBN: 9780134067117
Author: Hogan
Publisher: VST
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Question
Chapter 23, Problem 18DQP
To determine
Describe the objective of each
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Students have asked these similar questions
When auditors perform the bank reconciliation test, what would be the appropriate audit procedure for the cash receipts reported on the bank statement but not on the company cash account?
A.
Auditors investigate whether those cash payments are recorded in the cash payment journal.
B.
Auditors investigate whether those cash receipts are recorded in the cash receipt journal.
C.
Auditors trace those cash receipt transactions to bank statements issued in subsequent periods to see if they appear in bank statements after the balance date.
D.
Unpresented cheques need to be traced to subsequent bank statements.
E.
All of the options are correct.
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 choices
Which of the following is one of the better auditing techniques to detect kiting?(1) Review composition of authenticated deposit slips.(2) Review subsequent bank statements and cancelled checks received directlyfrom the banks.(3) Prepare year-end bank reconciliations.(4) Prepare a schedule of bank transfers from the client’s books
Chapter 23 Solutions
EBK AUDITING AND ASSURANCE SERVICES
Ch. 23 - Explain the relationships among the initial...Ch. 23 - Prob. 2RQCh. 23 - Prob. 3RQCh. 23 - Prob. 4RQCh. 23 - Prob. 5RQCh. 23 - Prob. 6RQCh. 23 - Prob. 7RQCh. 23 - Prob. 8RQCh. 23 - Prob. 9RQCh. 23 - Prob. 10RQ
Ch. 23 - Prob. 11RQCh. 23 - Prob. 12RQCh. 23 - Prob. 13RQCh. 23 - Prob. 14.1MCQCh. 23 - Prob. 14.2MCQCh. 23 - Prob. 14.3MCQCh. 23 - Prob. 15.1MCQCh. 23 - Prob. 15.2MCQCh. 23 - Prob. 15.3MCQCh. 23 - Prob. 16.1MCQCh. 23 - Prob. 16.2MCQCh. 23 - Prob. 16.3MCQCh. 23 - Prob. 17DQPCh. 23 - Prob. 18DQPCh. 23 - Prob. 19DQPCh. 23 - Prob. 20DQPCh. 23 - Prob. 21DQPCh. 23 - You are doing the first-year audit of Sherman...Ch. 23 - Prob. 23DQPCh. 23 - McNeil Company, a medium-sized manufacturer of...Ch. 23 - The amount of subjectivity involved in...
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Similar questions
- Inner Resources Company received the following bank statement. Using the information from PA11 and PA12, prepare the bank reconciliation.arrow_forward4. The starting point for the verification of the balance in the general bank account is to obtain: A. The client’s year-end bank statement B. The client’s cash account from the general ledger C. A bank reconciliation from the client D. A cutoff bank statement directly form the bank 5. 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. Compare to general ledger B. Trace to cash receipts journal C. Confirm directly to bank D. Trace items on the cut-off bank statement to bank reconciliationarrow_forwardWhich of the following is an effective audit procedure that an auditor might use to detect kiting between intercompany banks?a. Review the composition of authenticated deposit slips.b. Review subsequent bank statements.c. Prepare a schedule of the bank transfers.d. Prepare a year-end bank reconciliation.arrow_forward
- when auditing a client's year end cash balance, an auditor uses standard bank confirmations and performs tests on the clients year end bank reconciliations. These substantive procedures test which of the following assertions? a. understandability of presentation and classification b. cutoff c. completeness and valuation and allowance d. rights and obligations, and occurencearrow_forwardA1) Which of the following would the auditor most likely perform when auditing the bank reconciliation for a December 31 year-end audit? a. Confirm the audit client’s book balance shown on the bank reconciliation directly with the bank. b. Verify the audit client’s book balance shown on the bank reconciliation to the Cash balance in the audit client’s trial balance and general ledger. c. Subtract the outstanding check amounts from the audit client’s book balance. d. Verify the deposits in transit amounts to the audit client’s December bank statement.arrow_forwardIn your audit of Ginko Company, you have received a cash confirmation and a cutoff statement from the bank on Ginko’s one bank account. Prepare a list of substantive procedures for Ginko’s casharrow_forward
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