Cash

Question 1

review the clients bank reconciliation for____ cash account

Answer 1

each

Question 2

request a ______bank statement approximately 10 days after year end to test the reconciling items on the year end bank statement

Answer 2

cutoff

Question 3

on the cuttoff bank statement, look for _______, and make sure deposits in transit on the bank rec have been processed as deposits on the cuttoff bank statement. this tests for existence/occurence and should be in chronilogical order.

Answer 3

deposits in transit

Question 4

on the cuttoff bank statement look for ________, and looks for checks processed with the cuttoff bank statement and having a date prior to year end and trace those items to the clients list of outstanding checks for completeness

Answer 4

outstanding checks

Question 5

_______directly with the bank the balance according to the bank statement. confirm two bank related matters.

1. cash balance with emphasis on the ______assertion
2. liabilities with the bank with emphasis on the _____assertion

Answer 5

confirm
existence
completeness

Question 6

what is kiting?

Answer 6

kiting is an overstatment of the true cash balance at year end caused by recording the receipt, while failing to record the disbursement

Question 7

if fraud (missappropriation) is suspected

Answer 7

the auditor may prepare a proof of cash