Chapter 23 - Chapter 23 Multiple-Choice Questions 1 Which of the following misstatements is most likely to be uncovered during an audit of a easy

Chapter 23 - Chapter 23 Multiple-Choice Questions 1 Which...

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Chapter 23Multiple-Choice Questions1. Which of the following misstatements is most likely to be uncovered during an audit of aeasy client’s bank reconciliation?c a. Duplicate payment of a vendor’s invoice.b. Billing a customer at a lower price than indicated by company policy.c. Failure to record a collection of a note receivable by the bank on the client’s behalf.d. Payment to an employee for more than the hours actually worked.2. Which of the following is the focus of an audit of cash for most companies?easy a 3. The test of details of balances procedure that requires the auditor to foot the outstanding checkeasy list and deposits in transit is an attempt to satisfy which audit objective?c 4. Which of the following cycles does not affect cash in bank?easy b 5. The audit objective of determining that cash in bank, as stated on the reconciliation, footseasy correctly and agrees with the general ledger can be tested by which of the followingc procedures?a. Performing tests for kiting.b. Receiving and testing a cutoff bank statement.c. Footing the outstanding checks list and the list of deposits in transit.d. Examining the minutes of the board of directors for restrictions on the use of cash.6. The test details of balances procedure that requires the auditor to trace the book balance on theeasy reconciliation to the general ledger is an attempt to satisfy the audit objective of:a
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7. Which of the following statements is correct?easy d confirmations.unusuallylarge number of inactive bank accounts.8. Cash is important to auditors primarily because of the potential for:easy Arens/Elder/Beasleyb
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