Table of Contents
Show
 Which of the following audit procedures would most likely detect lapping?A practical and effective audit procedure for the detection of lapping is: Comparing recorded cash receipts in detail against items making up the bank deposit as shown on duplicate deposit slips validated by the bank. Which of the following is not a control that generally is established over cash receipts? Which procedure is an auditor most likely to use to detect a check outstanding at year-end that was not recorded as outstanding on the?Which procedure is an auditor most likely to use to detect a check outstanding at year-end that was not recorded as outstanding on the year-end bank reconciliation? Receive a cutoff statement directly from the client's bank. Which of the following would best protect a company that wishes to prevent lapping *?Which of the following would be the best protection for a company that wishes to prevent the "lapping" of trade accounts receivable? Have customers send payments directly to the company's depository bank. How can an auditor detect kiting?The auditor can detect this form of kiting by ensuring any outstanding deposit appearing on a bank reconciliation at balance date that arises from an inter-entity cheque (in the example, the deposit from A of 60) is also recorded by the paying entity as a cheque drawn prior to balance date (and not, as shown above, as ... How do you find lapping in accounting?A lapping scheme can be detected by tracing how cash receipts have been applied to customer accounts. If there is evidence that cash receipts are routinely being applied to the wrong customer accounts, then there is likely an active lapping scheme in progress. Which of the following is most likely to be detected by an auditor's review of an entity's sales cutoff?Which of the following is most likely to be detected by an auditor's review of an entity's sales cutoff? Unrecorded sales for the year. Which of the checks might indicate kiting?An auditor would most likely detect kiting by reviewing the bank transfer schedule and following-up on all transfers for which the receipt date per bank is recorded in the accounting period before the disbursement date. Checks #202 and #404 both meet this criterion and therefore might indicate kiting. Which of the following audit procedures is best for identifying unrecorded trade accounts payable?Which of the following audit procedures is best for identifying unrecorded trade accounts payable? Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payable applies to the prior period. What evidence is appropriate to determine whether recorded purchase transactions are valid and the vendors charged the correct prices?What evidence is appropriate to determine whether recorded purchase transactions are valid and the vendors charged the correct prices? Receiving reports and purchase orders. Which of the following procedures is most effective for identifying unrecorded trade accounts payable?Which of the following audit procedures is best for identifying unrecorded trade accounts payable? Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payable applies to the prior period. What are the most common audit deficiencies in the SEC?Relying on internal controls (rely too much/failing to react to known control weaknesses). The exhibit above highlights the top 10 audit deficiencies the SEC claimed. The most common problem—alleged in 80% of the cases—was the auditor’s failure to gather sufficient evidence. What are the flashcards for the audit exam?The susceptibility of the related assets or liability to loss or fraud. The interaction or relationship of the control with other controls. The financial statement amounts exposed to the deficiency. The nature of the financial statement accounts, disclosures, and assertions involved. What are the most common accounts receivable deficiencies?Accounts receivable. The SEC cited numerous deficiencies in confirming accounts receivable (present in 29% of the cases). These deficiencies included Failure to confirm enough receivables. Failure to perform alternative procedures when confirmations were not returned or were returned with material exceptions. What are some of the most common audit problems?OTHER COMMON AUDIT PROBLEMS INCLUDE FAILURE to exercise due professional care and the appropriate level of professional skepticism, overreliance on inquiry as a form of audit evidence, deficiency in confirming accounts receivable, failure to recognize related party transactions and assuming internal controls exist when they may not. Related Posts:Which of the following control procedures will likely prevent the concealment of a cash shortage that was perpetrated by improperly writing off a trade account receivable?A separate ledger. Which of the following controls will most likely prevent the concealment of a cash shortage resulting from the improper write-off of a trade account receivable? Write-offs must be approved by a responsible officer after review of credit department recommendations and supporting evidence.
Which of the following audit procedures is the most appropriate when internal control over cash?Which of the following audit procedures is the most appropriate when internal control over cash is weak or when a client requests an investigation of cash transactions? -Bank reconciliation.
Which of the following controls would most likely help ensure that all credit sales transactions of an entity are recorded?Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded? The billing department supervisor matches prenumbered shipping documents with entries in the sales journal. The sequential numbering of documents provides a standard control over transactions.
Which of the following might be detected by an auditor's review of the client sales cutoff?Which of the following would most likely be detected by an auditor's review of the client's sales cutoff? Excessive goods returned for credit.
|
Which of the following would be the best protection for a company that wishes to prevent the lapping?
Urheberrechte © © 2024 ketiadaan Inc.
