Cash Cycle, Revenue Cycle, and Expenditure Cycle - CPA Auditing and Attestation (AUD)
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For the most effective internal control, monthly bank statements should be received directly from the banks and reviewed by the:
For the most effective internal control, monthly bank statements should be received directly from the banks and reviewed by the:
The internal auditor generally is independent of other functions relating to cash.
The internal auditor generally is independent of other functions relating to cash.
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Which of the following internal controls most likely would reduce the risk of diversion of customer receipts by an entity’s employees?
Which of the following internal controls most likely would reduce the risk of diversion of customer receipts by an entity’s employees?
A lockbox system is the best means of preventing fraud of cash by employees because they will never have direct access to cash receipts.
A lockbox system is the best means of preventing fraud of cash by employees because they will never have direct access to cash receipts.
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An auditor would be most likely to identify a contingent liability by obtaining a (an):
An auditor would be most likely to identify a contingent liability by obtaining a (an):
An auditor would be most likely to identify a contingent liability by obtaining a standard bank confirmation which has an exception and comments box that specifically discloses contingent liabilities as the endorser of loans, for open letters of credit, etc.
An auditor would be most likely to identify a contingent liability by obtaining a standard bank confirmation which has an exception and comments box that specifically discloses contingent liabilities as the endorser of loans, for open letters of credit, etc.
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Of the following, which set of information does an auditor usually confirm on one form?
Of the following, which set of information does an auditor usually confirm on one form?
The AICPA standard bank confirmation form includes spaces for the bank to confirm both cash balances on deposit at the bank and collateral pledged on loans originating from the bank.
The AICPA standard bank confirmation form includes spaces for the bank to confirm both cash balances on deposit at the bank and collateral pledged on loans originating from the bank.
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Which of the following characteristics would most likely be indicative of check kiting?
Which of the following characteristics would most likely be indicative of check kiting?
Kiting occurs when a check is drawn on one bank and deposited in another bank and no record is made of the disbursement in the balance sheet of the bank.
Kiting occurs when a check is drawn on one bank and deposited in another bank and no record is made of the disbursement in the balance sheet of the bank.
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Of the following cycles, which would involve purchases, payables, and cash disbursements?
Of the following cycles, which would involve purchases, payables, and cash disbursements?
Only the expenditure cycle would involve these three aspects, whereas the cash cycle may include cash disbursements, only the expenditure cycle deals with all three.
Only the expenditure cycle would involve these three aspects, whereas the cash cycle may include cash disbursements, only the expenditure cycle deals with all three.
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Proper segregation of duties requires that
Proper segregation of duties requires that
Proper segregation of duties requires that bank reconciliations are prepared by those employees not associated with disbursing funds.
Proper segregation of duties requires that bank reconciliations are prepared by those employees not associated with disbursing funds.
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Physical control over those in charge of disbursement would be:
Physical control over those in charge of disbursement would be:
Physical control is not associated with procedures. The use methods to protect assets such as physical barriers and mitigating activities such as insurance. The other examples are procedural internal control methods.
Physical control is not associated with procedures. The use methods to protect assets such as physical barriers and mitigating activities such as insurance. The other examples are procedural internal control methods.
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At the end of each month, the senior accountant compares a vendor statement to the accounts payable. This is an example of a
At the end of each month, the senior accountant compares a vendor statement to the accounts payable. This is an example of a
Comparing independent documents with company records is a form of the review procedure. It doesn’t require authorization or physical control.
Comparing independent documents with company records is a form of the review procedure. It doesn’t require authorization or physical control.
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In auditing A/P, an auditor's procedures most likely would focus primarily on management's assertion of:
In auditing A/P, an auditor's procedures most likely would focus primarily on management's assertion of:
When testing liabilities, an auditor generally is concerned about understatement. Therefore, in auditing A/P, an auditor's procedures most likely would focus primarily on management's assertion of completeness.
When testing liabilities, an auditor generally is concerned about understatement. Therefore, in auditing A/P, an auditor's procedures most likely would focus primarily on management's assertion of completeness.
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The authority to accept incoming goods in receiving should be based on a(n):
The authority to accept incoming goods in receiving should be based on a(n):
The authority to accept incoming goods in receiving should be based upon an approved purchase order.
The authority to accept incoming goods in receiving should be based upon an approved purchase order.
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For the most effective internal control, monthly bank statements should be received directly from the banks and reviewed by the:
For the most effective internal control, monthly bank statements should be received directly from the banks and reviewed by the:
The internal auditor generally is independent of other functions relating to cash.
The internal auditor generally is independent of other functions relating to cash.
Compare your answer with the correct one above
Which of the following internal controls most likely would reduce the risk of diversion of customer receipts by an entity’s employees?
Which of the following internal controls most likely would reduce the risk of diversion of customer receipts by an entity’s employees?
A lockbox system is the best means of preventing fraud of cash by employees because they will never have direct access to cash receipts.
A lockbox system is the best means of preventing fraud of cash by employees because they will never have direct access to cash receipts.
Compare your answer with the correct one above
An auditor would be most likely to identify a contingent liability by obtaining a (an):
An auditor would be most likely to identify a contingent liability by obtaining a (an):
An auditor would be most likely to identify a contingent liability by obtaining a standard bank confirmation which has an exception and comments box that specifically discloses contingent liabilities as the endorser of loans, for open letters of credit, etc.
An auditor would be most likely to identify a contingent liability by obtaining a standard bank confirmation which has an exception and comments box that specifically discloses contingent liabilities as the endorser of loans, for open letters of credit, etc.
Compare your answer with the correct one above
Of the following, which set of information does an auditor usually confirm on one form?
Of the following, which set of information does an auditor usually confirm on one form?
The AICPA standard bank confirmation form includes spaces for the bank to confirm both cash balances on deposit at the bank and collateral pledged on loans originating from the bank.
The AICPA standard bank confirmation form includes spaces for the bank to confirm both cash balances on deposit at the bank and collateral pledged on loans originating from the bank.
Compare your answer with the correct one above
Which of the following characteristics would most likely be indicative of check kiting?
Which of the following characteristics would most likely be indicative of check kiting?
Kiting occurs when a check is drawn on one bank and deposited in another bank and no record is made of the disbursement in the balance sheet of the bank.
Kiting occurs when a check is drawn on one bank and deposited in another bank and no record is made of the disbursement in the balance sheet of the bank.
Compare your answer with the correct one above
Of the following cycles, which would involve purchases, payables, and cash disbursements?
Of the following cycles, which would involve purchases, payables, and cash disbursements?
Only the expenditure cycle would involve these three aspects, whereas the cash cycle may include cash disbursements, only the expenditure cycle deals with all three.
Only the expenditure cycle would involve these three aspects, whereas the cash cycle may include cash disbursements, only the expenditure cycle deals with all three.
Compare your answer with the correct one above
Proper segregation of duties requires that
Proper segregation of duties requires that
Proper segregation of duties requires that bank reconciliations are prepared by those employees not associated with disbursing funds.
Proper segregation of duties requires that bank reconciliations are prepared by those employees not associated with disbursing funds.
Compare your answer with the correct one above
Physical control over those in charge of disbursement would be:
Physical control over those in charge of disbursement would be:
Physical control is not associated with procedures. The use methods to protect assets such as physical barriers and mitigating activities such as insurance. The other examples are procedural internal control methods.
Physical control is not associated with procedures. The use methods to protect assets such as physical barriers and mitigating activities such as insurance. The other examples are procedural internal control methods.
Compare your answer with the correct one above
At the end of each month, the senior accountant compares a vendor statement to the accounts payable. This is an example of a
At the end of each month, the senior accountant compares a vendor statement to the accounts payable. This is an example of a
Comparing independent documents with company records is a form of the review procedure. It doesn’t require authorization or physical control.
Comparing independent documents with company records is a form of the review procedure. It doesn’t require authorization or physical control.
Compare your answer with the correct one above