A4 - Performing further procedures, forming conclusions, and communications Flashcards
1
Q
Cutoff
A
To ensure transaction was recorded in the proper period.
2
Q
Valuation, Allocation, & Accuracy
A
Compare to documents for confirmation
3
Q
Lapping
A
Concealing theft by failing to account for cash receipts
4
Q
Kiting
A
Check drawn on one bank is deposited in another bank without recording the disbursement from the first bank. Overstates cash on FS.
5
Q
Measuring Fair Value of Investments
A
Level 1: Observable quoted prices in active markets for identical assets/liabilities.
Level 2: Observable inputs other than quoted mkt prices for identical assets/liabilities.
Level 3: Unobservable inputs using estimates & valuation methods. Based on management’s judgments.