MULTIPLE CHOICE: 4. An auditor who is engaged to examine the financial statements of a business entity will request cutoff bank statement primarily in order to: A. Detect lapping B. Detect kiting C. Verify reconciling items on the client’s bank reconciliation D. Verify the cash balance reported on the bank confirmation inquiry form
MULTIPLE CHOICE:
4. An auditor who is engaged to examine the financial statements of a business entity will request cutoff bank statement primarily in order to:
A. Detect lapping
B. Detect kiting
C. Verify reconciling items on the client’s bank reconciliation
D. Verify the cash balance reported on the bank confirmation inquiry form
5. Which of the following
A. Trace year end outstanding checks and deposits in transit to the cutoff bank statement
B. Reconcile the bank account as of the end of the cutoff period
C. Compare dates, payees and endorsements on returned checks with the cash disbursements record
D. Determine that the year-end deposit in transit was credited by the bank on the first working day of the following accounting period.
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