Q: Distinguish between lapping and kiting. Describe audit procedures that can be
Distinguish between lapping and kiting. Describe audit procedures that can be used to uncover each.
See AnswerQ: Assume that a client with excellent internal controls uses an imprest payroll
Assume that a client with excellent internal controls uses an imprest payroll bank account. Explain why the verification of the payroll bank reconciliation ordinarily takes less time than the tests of...
See AnswerQ: Distinguish between the verification of petty cash reimbursements and the verification of
Distinguish between the verification of petty cash reimbursements and the verification of the balance in the fund. Explain how each is done. Which is more important?
See AnswerQ: Why is there a greater emphasis on the detection of fraud in
Why is there a greater emphasis on the detection of fraud in tests of details of cash balances than for other balance sheet accounts? Give two specific examples that demonstrate how this emphasis affe...
See AnswerQ: Explain why, in verifying bank reconciliations, most auditors emphasize the
Explain why, in verifying bank reconciliations, most auditors emphasize the possibility of a nonexistent deposit in transit being included in the reconciliation and an outstanding check being omitted...
See AnswerQ: How will a company's bank reconciliation reflect an electronic deposit of cash
How will a company's bank reconciliation reflect an electronic deposit of cash received by the bank from credit card agencies making payments on behalf of customers purchasing products from the compan...
See AnswerQ: The following questions deal with discovering fraud in auditing year-end
The following questions deal with discovering fraud in auditing year-end cash. Choose the best response. a. Which of the following is one of the better auditing techniques to detect kiting? (1) Revie...
See AnswerQ: The following are misstatements that might be found in the client's year
The following are misstatements that might be found in the client's year-end cash balance (assume that the balance sheet date is June 30): 1. The outstanding checks on the June 30 bank reconciliation...
See AnswerQ: The following audit procedures are concerned with tests of details of general
The following audit procedures are concerned with tests of details of general cash balances: 1. Obtain a standard bank confirmation from each bank with which the client does business. 2. Compare the b...
See AnswerQ: Distinguish between FOB destination and FOB origin. What procedures should the
Distinguish between FOB destination and FOB origin. What procedures should the auditor follow concerning acquisitions of inventory on an FOB origin basis near year-end?
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