Auditing Chapter 16 quizzes and 14, 15, 16 test

Auditing Chapter 16 quizzes and 14, 15, 16 test - All of...

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All of the following can assist the auditor in testing the existence assertion for investment securities except Choose one answer. a. Physical examination b. Comparing fair value to cost c. Confirmation with the issuer d. Confirmation with the custodian Incorrect Marks for this submission: 0/1. Question 2 Marks: 1 An auditor who is engaged to examine the financial statements of a business enterprise will request a cutoff bank statement primarily in order to Choose one answer. a. Verify the cash balance reported on the bank confirmation inquiry form b. Verify reconciling items on the client's bank reconciliation c. Detect lapping d. Detect kiting Correct Marks for this submission: 1/1. Question 3 Marks: 1 The auditor's use of analytical procedures for auditing cash is limited. Answer: True False Correct Marks for this submission: 1/1. Question 4 Marks: 1 Which of the following pairs of accounts would an auditor most likely analyze on the same working paper? Choose one answer. a. Notes receivable and interest income b. Accrued interest receivable and accrued interest payable c. Notes payable and notes receivable d. Interest income and interest expense Incorrect Marks for this submission: 0/1. Question 5
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Marks: 1 Under which of the following circumstances would an auditor be most likely to intensify an examination of a $1,000 petty cash fund maintained on an imprest basis? Choose one answer. a. Reimbursement vouchers are not prenumbered b. Reimbursement of the fund from the general cash account occurs twice or more each week c. The custodian occasionally uses the cash fund to cash employee checks d. The custodian endorses reimbursement checks Incorrect Marks for this submission: 0/1. Question 6 Marks: 1 The cashier of Brooke Company covered a shortage in the cash working fund with cash obtained on December 31 from a local bank by cashing, but not recording, a check drawn on the Company's out-of-town bank. How would the auditor discover this manipulation? Choose one answer. a. Confirming all December 31 bank balances b. Counting the cash working fund at the close of business on December 31 c. Preparing independent bank reconciliations as of December 31 d. Preparing and detail testing a bank transfer schedule Incorrect Marks for this submission: 0/1. Question 7 Marks: 1 When an auditor is unable to inspect and count a client's investment securities until after the balance sheet date, the bank where the securities are held in a safe-deposit box should be notified on or before the balance sheet date that they will be asked to Choose one answer. a. Verify any differences between the contents of the box and the balances in the client's subsidiary ledger b. Provide a list of securities added and removed from the box between the balance sheet date and the security-count date c. Confirm that there has been no access to the box between the balance sheet date and the security-count date d. Count the securities in the box so that the auditor will have an independent direct verification Correct Marks for this submission: 1/1.
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This note was uploaded on 05/06/2011 for the course AUDITING 4505 taught by Professor Messier during the Spring '11 term at University of Minnesota Duluth.

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Auditing Chapter 16 quizzes and 14, 15, 16 test - All of...

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