acctg something

as a separate line item

a bank deposit that is restricted in use should be included:

standard confirmation form

a form designed to provide corroborating evidence about the client's account balances and outstanding loans is a

kiting

a fraudulent act that causes an amount of cash to be included in the balance of two or more bank accounts at the same time to conceal a cash shortage or meet short-term cash needs

charged to the proper account and supported by adequate vouchers

a large payment to an officer of the business should be verified to ensure it was:

standard confirmation

account balances are often verified with financial institutions using a _____________ form that addresses only the client's deposits and loan balances.

disclosed

agreements to maintain compensating balances should be ___________ in the financial statements

proof of cash

an audit procedure that reconciles the bank's record of cash activity with the client's accounting records for a test period is called a

a flowchart or written description of controls, assessment of risk for the financial statement assertions about cash, summarized test of controls for cash transactions

audit working papers for cash typically include:

auditors may substantiate other items that flow through cash, a company with poor internal controls over cash may be concealing fraud, cash is the most liquid of assets, and therefore inherent risk is high

auditors focus on cash because

cutoff

auditors verify deposits in transit as shown on the year-end bank reconciliation appear as credits on the bank statement on the first business day of the new year to verify proper _________ of cash receipts.

notes receivable, securities and other investments, cash funds

before verifying the client's cash on hand, auditors must establish control over:

dividend record books

dividends that should have been received and recorded can be computed by referring to ______________ published by investment and advisory services.

registered

internal control over the financial investments should require that securities are __________ in the name of the company

1. obtain an understanding of the internal control 2. assess the risk of material misstatement and design further audit procedures 3. perform test of controls for investment transactions 4. perform substantive procedures for investment transactions

steps for auditing financial statements

test the accuracy of the year-end reconcilliation

the auditors may ask the financial institutions for cutoff bank statements in order to:

general ledger

the auditors prepare a list of all the client's cash accounts and related information. this information is trached and reconciled to the __________.

overstated

the auditors should review cutoff bank statements for any paid checks issued on or before the balance sheet date but not listed as outstanding on the client's year-end bank reconciliation, in order to determine that the amount of cash shown on the balance sheet date was not:

balance sheet date

the petty cash funds and change funds may be counted at any time before of after the

checks were not mailed until after year end

unreasonable delays in the presentation for payment of checks listed as outstanding at year end implies:

proof of cash

when internal control over the recording of cash receipts and disbursements is considered weak, the auditors may prepare a _______, which reconciles cash transactions occurring during a specific period.