EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Chapter 16, Problem 16.6RQ
To determine
Concept Introduction:
Internal control is a procedure designed by a company, to ensure whether the company’s financial or operationalprocess is done according to the company’s regulations/policies and helps to make operations moreefficient and effective. The
To discuss:Three fraud-related to audit procedure for cash
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Students have asked these similar questions
List FOUR audit procedures to test of control the cash and cash equivalent and state the purpose for each of procedures.
List the transaction-related audit objectives for the verificationof cash receipts. For each objective, state one internal control that the client can use toreduce the likelihood of misstatements.
Which of the following is the best audit procedure for the detection of lapping?
a. Comparison of postings of cash receipts to accounts with the details of cash deposits.
b. Confirmation of the cash balance.
c. Reconciliation of the cash account balances.
d. Preparing a proof of cash.
Chapter 16 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 16 - Prob. 16.1RQCh. 16 - Prob. 16.2RQCh. 16 - Prob. 16.3RQCh. 16 - Prob. 16.4RQCh. 16 - Prob. 16.5RQCh. 16 - Prob. 16.6RQCh. 16 - Prob. 16.7RQCh. 16 - Prob. 16.8RQCh. 16 - Prob. 16.9RQCh. 16 - Prob. 16.10RQ
Ch. 16 - Prob. 16.11RQCh. 16 - Prob. 16.12MCQCh. 16 - Prob. 16.13MCQCh. 16 - Prob. 16.14MCQCh. 16 - Prob. 16.15MCQCh. 16 - Prob. 16.16MCQCh. 16 - Prob. 16.17MCQCh. 16 - Prob. 16.18MCQCh. 16 - Prob. 16.19MCQCh. 16 - Prob. 16.20MCQCh. 16 - Prob. 16.21MCQCh. 16 - Prob. 16.22MCQCh. 16 - Prob. 16.23MCQCh. 16 - Prob. 16.24PCh. 16 - Prob. 16.25PCh. 16 - Prob. 16.26PCh. 16 - Prob. 16.27PCh. 16 - Prob. 16.28PCh. 16 - Prob. 16.29PCh. 16 - Prob. 16.30P
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- Enumerate the similarities and differences in audit procedures and objectives in cash and cash equivalent and receivables .arrow_forwardExplain the relationships among the initial assessed controlrisk, tests of controls and substantive tests of transactions for cash receipts, and the testsof details of cash balances.arrow_forwardDescribe the audit procedure for cash.arrow_forward
- Which audit claims will be met by the audit method of cash count and bank verification requests?arrow_forwardUsing the following categories, define the purpose of each of thecommon controls over cash listed below. You may use multiple categories for each control.Categories of Purpose of each Common Control -To prevent theft of cash -To ensure complete recording of cash -To prevent modification of the recording of cash -To detect inaccuracy of ending cash balance or misstatements therein. -To ensure that all items are uniquely identified and that an adequate audit trail exists for transactions. -To serve as a deterrent for fraud. Common Controls Over Cash -Segregation of duties -Restrictive endorsements of customer checks -Independent bank reconciliation by employees who do not handle cash -Computerized control totals and edit tests -Authorization of transactions -Prenumbered cash receipts documents and turn around documents -Periodic internal audits -Competent, well-trained employeesarrow_forward6) Examine the cash receipts journal in the accounting system and compare the amounts received to the corresponding amounts invoiced in the revenue accounting system and to the bank statement evidencing the deposit. This is an example of which of the following? A) audit objective B) audit assertion C) audit procedure D) audit programarrow_forward
- What are the internal controls that should be in place to ensure the accuracy and security of cash and cash equivalents?arrow_forwardExplain the relationships among the initial assessed controlrisk, tests of controls and substantive tests of transactions for cash disbursements, andthe tests of details of cash balances. Give one example in which the conclusions reachedabout internal controls in cash disbursements will affect the tests of cash balancesarrow_forwardWhat is the importance of each assertion in the audit of cash?arrow_forward
- What is cash disbursement journal? Why it is useful to auditor in cash audit?arrow_forwardwhich audit assertions the audit procedure of cash count and bank confirmation requests will meet?arrow_forwardWhich of the following statements are true regarding the control of cash receipts and cash payments? Custody over cash should be separate from the recordkeeping of cash.arrow_forward
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