Cash Cycle - CPA Auditing and Attestation (AUD)
Card 1 of 24
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:
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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?
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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):
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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?
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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?
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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?
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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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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:
Tap to reveal answer
The internal auditor generally is independent of other functions relating to cash.
The internal auditor generally is independent of other functions relating to cash.
← Didn't Know|Knew It →
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?
Tap to reveal answer
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.
← Didn't Know|Knew It →
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):
Tap to reveal answer
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.
← Didn't Know|Knew It →
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?
Tap to reveal answer
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.
← Didn't Know|Knew It →
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?
Tap to reveal answer
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.
← Didn't Know|Knew It →
Of the following cycles, which would involve purchases, payables, and cash disbursements?
Of the following cycles, which would involve purchases, payables, and cash disbursements?
Tap to reveal answer
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.
← Didn't Know|Knew It →
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:
Tap to reveal answer
The internal auditor generally is independent of other functions relating to cash.
The internal auditor generally is independent of other functions relating to cash.
← Didn't Know|Knew It →
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?
Tap to reveal answer
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.
← Didn't Know|Knew It →
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):
Tap to reveal answer
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.
← Didn't Know|Knew It →
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?
Tap to reveal answer
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.
← Didn't Know|Knew It →
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?
Tap to reveal answer
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.
← Didn't Know|Knew It →
Of the following cycles, which would involve purchases, payables, and cash disbursements?
Of the following cycles, which would involve purchases, payables, and cash disbursements?
Tap to reveal answer
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.
← Didn't Know|Knew It →
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:
Tap to reveal answer
The internal auditor generally is independent of other functions relating to cash.
The internal auditor generally is independent of other functions relating to cash.
← Didn't Know|Knew It →
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?
Tap to reveal answer
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.
← Didn't Know|Knew It →