AUDITING & ASSURANCE SERVICES CONNECT AC
10th Edition
ISBN: 9781259292057
Author: MESSIER
Publisher: MCG
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Chapter 15, Problem 15.11MCQ
To determine
Concept Introduction:
Notes payable is the amount of promissory notes issued by the concern due within one year also known as current liability. Notes payable is known as bills payable. A note payable is also accepted in place of accounts payable for a credit purchase.
To choose: The correct statement concerning the auditor most likely include on a control questionnaire for notes payable.
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Students have asked these similar questions
Which of the following questions would auditors most likely include on an internal control questionnaire for notes payable?a. Are assets that collateralize notes payable critically needed for the entity’s continued existence?b. Are two or more authorized signatures required on checks that repay notes payable?c. Are the proceeds from notes payable used to purchase noncurrent assets?d. Are direct borrowings on notes payable authorized by the board of directors?
What steps does an auditor ordinarily take when confirming cash balances held on deposits with financial institutions?
When auditing contingent liabilities, which of the following procedures would be MOST effective?
a.
Reviewing the allowance for doubtful accounts.
b.
Reviewing the bank cutoff statement.
c.
Examining customer confirmation replies.
d.
Examining invoices for repairs expense.
e.
Abstracting the minutes of the board of directors.
Chapter 15 Solutions
AUDITING & ASSURANCE SERVICES CONNECT AC
Ch. 15 - Prob. 15.1RQCh. 15 - Prob. 15.2RQCh. 15 - Prob. 15.3RQCh. 15 - Prob. 15.4RQCh. 15 - Prob. 15.5RQCh. 15 - Prob. 15.6RQCh. 15 - Prob. 15.7RQCh. 15 - Prob. 15.8RQCh. 15 - Prob. 15.9RQCh. 15 - Prob. 15.10RQ
Ch. 15 - Prob. 15.11MCQCh. 15 - Prob. 15.12MCQCh. 15 - Prob. 15.13MCQCh. 15 - Prob. 15.14MCQCh. 15 - Prob. 15.15MCQCh. 15 - Prob. 15.16MCQCh. 15 - Prob. 15.17MCQCh. 15 - Prob. 15.18MCQCh. 15 - Prob. 15.19MCQCh. 15 - Prob. 15.20MCQCh. 15 - Prob. 15.21PCh. 15 - Prob. 15.22PCh. 15 - Prob. 15.23PCh. 15 - Prob. 15.24P
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- Which audit claims will be met by the audit method of cash count and bank verification requests?arrow_forwardWhich of the following is NOT a criterion for evaluating bank liquidity used by regulators?a. availability of assets readily converted into cashb. the diversity of the bank's money market assetsc. the bank's formal and informal commitments for future lending or investmentsd. structure and volatility of deposits All of the following are common ratio measures of bank liquidity EXCEPT:a. loans/depositsb. loans/nondeposit liabilitiesc. unencumbered liquid assets/nondeposit liabilitiesd fixed assets/loans The quantity of deposit and nondeposit funds in a bank depends on all of the following EXCEPT:a. the Fed's monetary policy actionsb. the bank's financial strengthc. economic conditionsd. none of the abovearrow_forwardwhich audit assertions the audit procedure of cash count and bank confirmation requests will meet?arrow_forward
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- Discuss using figures how Bank Overdraft will affect the preparation of Bank Reconciliation Statement?arrow_forwardThe auditor must mail cash confirmations, but the client may mail long-term debt confirmations. Question 44 options: True Falsearrow_forwardIn preparing a bank reconciliation, what is the proper treatment of a bank service charge?arrow_forward
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