Segregation of duties for cash cycle (custody versus recording):
In the cash collection cycle, recording duties should be kept separate from
custody duties. Recording responsibilities include writing the amount on
both the deposit slip for the bank and AT
April 17, 2012
Guzel R. Sanders Ravilevna
John Christensens father owns a Chevron gas station that was built in 2001. Ever since it was built,
the process has been the same i
Practice Exam #3
Which of the following is not a likely source of information to assess fraud risks?
Communications among audit team members.
Inquiries of management.
Consideration of fraud risks discovered duri
Audit of the acquisitions and
Effective Internal Controls
Test of Controls - Completeness
1.Receipt of ordered materials by the receiving department will generate the completion
of a form called the:
2.The audit of _ is often the most difficult and complex part of an audit.
3.Inventory is a complex
CASE ONE - Audit Opinions
February 7, 2012
Guzel R Sanders Ravilevna
In October 2010, Neil, Inc. engaged Lifeson and Lee to perform an audit on its 2010 financial
statements. No material devia
Which of the following misstatements is most likely to be uncovered during an audit of a
clients bank reconciliation?
a. Duplicate payment of a vendors invoice.
b. Billing a customer at a lower price than ind