In testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also:A. Approves the voucher for payment.CB.C.D.Stamps, perforates or otherwise cancels supporting documents.Returns the checks to accounts payable.Is denied access to the supporting documents.

An auditor examining cash disbursement controls would probably search for proof that the individual…

In testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also: A. Approves the voucher for payment. Stamps, perforates or otherwise cancels supporting documents. O C. Returns the checks to accounts payable. B. D. Is denied access to the supporting documents.

In testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also: A. Approves the voucher for payment. Stamps, perforates or otherwise cancels supporting documents. O C. Returns the checks to accounts payable. B. D. Is denied access to the supporting documents.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 10RQSC

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There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records? A. One employee would have access to the cash register. B. The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form. C. Ask customers to report to a manager if they do not receive a sales receipt or invoice. D. The person behind the cash register should also be responsible for making price adjustments.
in testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also : a. Approves the voucher for payment b. stamps, perforates or cancel supporting documents c. is denied access to supporting documents d. returns the check to accounts payable
In testing controls over cash disbursements, an auditor most likely would determine that the person who signs checks also a. Returns the checks to accounts payable.b. Records the payment in the cash disbursements journalc. Stamped "paid" the supporting documents.d. Updates the accounts payable subsidiary ledger.
Which of the following control activities would best protect against the preparation ofimproper or inaccurate cash disbursements?a. All checks must be signed by an officer designated by the board of directors.b. All signed checks must be reviewed and compared with supporting documentation by thetreasurer before mailing.c. All checks must be sequentially numbered and accounted for by internal auditors.d. All checks must be perforated or otherwise effectively canceled when they are returnedwith the bank statement.
The following are deficiencies in internal controls over cash. For each deficiency indicate what substantive audit procedure(s) should be performed to determine whether any material misstatements exist. Consider each deficiency independently of the others. While each deficiency poses potential problems, identify two that would heighten your professional skepticism the most and explain your rationale, The person who opens the mail prepares the deposit when the cashier is not available. If a customer does not submit a remittance advice with a payment, the mail clerk sometimes does not prepare one for the accounts receivable department. Occasionally, the treasurer's department does not cancel the sup- porting documents for cash disbursements. Customer correspondence concerning monthly statements is han- dled by the person who makes the bank deposits. Bank reconciliations are not prepared on a timely basis. When prepared, they are prepared by the person who handles incoming mail.
During the confirmation of accounts receivable, an auditor receives a confirmation via the client’s fax machine. Which of the following actions should the auditor take?a. Not accept the confirmation and select another customer’s balance to confirm.b. Not accept the confirmation and treat it as an exception.c. Accept the confirmation and file it in the working papers.d. Accept the confirmation but verify the source and content through a telephone call to the respondent.
Which of the following would the auditor consider to be an incompatible operation if the cashier receives remittances?a. The cashier prepares the daily deposit.b. The cashier makes the daily deposit at a local bank.c. The cashier posts the receipts to the accounts receivable subsidiary ledger cards.d. The cashier endorses the checks.
Which of the following tasks should the cash disbursement clerk NOT perform?a. review the supporting documents for completeness and accuracyb. prepare checksc. approve the liabilityd. mark the supporting documents paid
What internal control procedure ( s ) would provide protection against the following threats ? An employee writes off a customer's accounts receivable balance as uncollectible to conceal the theft of subsequent cash payments from that customer .
Payment by check is an important internal control over cash payments because a. the check must be signed by an authorized official. b. before signing the check, the official reviews the invoice supporting the payment. c. Both a and b d. None of the above