amount of cash is accurately recorded on the financial statements. All of the following are appropriate engagement procedures for the objective except A. Examining bank reconciliations and confirming bank balances. B. Comparing cash receipt lists with the receipts journal and bank deposit slips. C. Adding totals of reconciliations and comparing with cash account balances. D. Verifying cutoff of receipts

Prepare any journal entries that should be made as a result of the bank reconciliation.

On receiving the bank cutoff statement, the auditor should trace:

Which of the following audit procedures is aimed most directly at testing the completeness assertion for accounts payable?     Footing the list of accounts payable.     Tracing shipping reports after year-end to related customer purchase orders and invoices.     Examining underlying documentation for cash disbursements in the period after year-end.     Tracing shipping reports issued on or before year-end to related customer purchase orders and invoices.

You are part of the audit team that is auditing Hillsburg Hardware Co. and you have been assigned to the sales and collection business process. You are testing whether the cash received has been recorded in the cash receipts journal. (completeness objective/assertion). List two tests of controls and at least one test of transactions that you would do to satisfy yourself regarding the completeness assertion. attachments

Does every audit have some type of bank confirmation?

1. Although the primary objective of an independent audit is not the discovery of fraud, the auditors in their work on cash take into consideration the high relative associated with this asset. One evidence of this attitude is evidenced by the CPAs alertness on signs of lapping. Define lapping and explain the audit procedures that CPAs might utilize to uncover lapping.    2. What actions should be taken by auditors when the count of cash on hand discloses shortage?

In preparing for the audit of cash, the auditors perform analytical procedures concerning cash balances. Which of the following would be the best source of information for use in the estimate of cash?a. Prior-years’ balances.b. Management inquiry.c. Cash budgets.d. Aged accounts receivable reports

Certainly! Here's a detailed information on bank reconciliation presented in table format: Bank Reconciliation Information: Key Components Definition Purpose Frequency Steps in Bank Reconciliation Common Adjustments Importance of Bank Reconciliation Explanation. Bank reconciliation is a process that compares the cash balance in a company's accounting records with the balance in its bank statement. - Identify discrepancies between the company's records and the bank statement. - Ensure accuracy and completeness of financial records. Detect errors, fraud, or unauthorized transactions. Typically performed monthly, but can be more frequent for larger transactions or to catch discrepancies early. 1. Start with the ending balance of the bank statement. 2. Add deposits in transit (deposits made but not yet recorded by the bank). 3. Deduct outstanding checks (checks written but not yet cleared by the bank). 4. Add or deduct bank errors (errors made by the bank in recording transactions). 5.…

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. C B. C. D. Stamps, perforates or otherwise cancels supporting documents. Returns the checks to accounts payable. Is denied access to the supporting documents.