Exam 6: Employee Fraud and the Audit of Cash

A proof of cash

Which of the following sets of information does an auditor usually confirm on one form?

After checks are signed for vendor invoices,why should vouchers be marked "paid" or otherwise mutilated?

When counting cash on hand the auditor must exercise simultaneous control over all cash and other negotiable assets to prevent

When an employee embezzles company funds from an electric utility company for the purpose of paying expenses of an anti-nuclear protest organization,the fraudster's motive is said to be

An auditor has identified the controller's review of the bank reconciliation as a control to test.In connection with this test,the auditor interviews the controller to understand the specific data reviewed on the reconciliation.In addition,the auditor verifies that the bank reconciliation is properly prepared by the accountant and reviewed by the controller as evidenced by their respective sign-offs.Which of the following types of audit procedures do these actions illustrate?

Auditors are auditing the cash receipts for Great Wall Corporation.For each audit procedure performed (numbered 1 - 5 below)select the control objective being tested by placing the correct letter in the blank. A. Existence B. Completeness C. Authorization D. Accuracy E. Classification F. Accounting and posting G. Proper period ____ 1. For a sample of recorded cash receipts, the auditors compared the date of receipt to the recording date. ____ 2. The auditors traced a sample of daily cash reports to the cash receipts journal. ____ 3. The auditors vouched a sample of recorded cash receipts to the deposits in the bank statement. ____ 4. The auditors recalculate the cash listed on the daily deposit for a sample of recorded cash receipts. ____ 5. The auditors traced a sample of recorded cash receipts to postings in the correct customers' accounts

Which of the following should be performed by the persons opening the mail and recording payments?

An audit plan of substantive procedures for cash would not include

An auditor is considering whether the omission of the confirmation of investments impairs the auditor's ability to support a previously expressed unmodified opinion.The auditor need not perform this omitted procedure if

An unrecorded check issued during the last week of the year would most likely be discovered by the auditor when the

Which of the following is ordinarily considered an "extended procedure" during the independent audit of financial statements?

Which of the following situations most likely represents the highest risk of a misstatement arising from misappropriation of assets?

Ed's wife Diane owns a printing business in town.Ed works in the accounts payable department of Jiffy Abs Vitamin Company.Diane prints invoices for work supposedly done for Jiffy Abs (no actual work was performed)and Ed places in the invoice in the approved for payment invoice pile.Jiffy Abs pays these invoices and sends Diane a check. 1.Name two internal controls that might prevent or detect these fraudulent payments. 2.Name two audit procedures that might detect this fraud.

A company employs three accounts payable clerks and one treasurer.Their responsibilities are as follows: Which of the following would indicate a weakness in the company's internal controls?

Which of the following would be consistent with an employee taking cash receipts from customers on account?

To gather evidence regarding the bank's balance in a bank reconciliation,an auditor would examine all of the following except the

An auditor would least likely initiate a discussion with a client's audit committee concerning

List,and briefly describe,the three factors that increase the probability of fraud.

To provide assurance that each voucher is submitted and paid only once,an auditor most likely would examine a sample of paid vouchers and determine whether each voucher is