Which of the following questions would auditors most likely include on an internal control questionnaire for notes payable?a. Are assets that collateralize notes payable critically needed for the entity’s continued existence?b. Are two or more authorized signatures required on checks that repay notes payable?c. Are the proceeds from notes payable used to purchase noncurrent assets?d. Are direct borrowings on notes payable authorized by the board of directors?

Q: efly explain about Basic Concepts of the Bank's Financial Statements.

A: Financial statements (or financial reports) are formal records of a business, individual, or other…

Q: Which of the following is NOT a criterion for evaluating bank liquidity used by regulators? a.…

A: Bank liquidity refers to measures of cash and other assets equivalent to cash which is available…

Q: Choose an alternative which is not the external source of audit evidence. a. Confirmation from…

A: External Evidence are audit evidences that originate outside the client’s organization. These…

Q: Of the following, which is the best example of a substantive test?Select one:   a. Examining a…

A: In auditing, a substantive test is a procedure designed to gather evidence to support the amounts…

Q: Which financial item of a bank is audited when the auditor pays particular attention to establishing…

A: During the audit, auditor should perform procedures to obatian reasonable assurance about the item…

Q: Confirmations of bank accounts may help the auditor to determine if material amounts of accounts…

A: An auditor is a professional, frequently an independent third party, who examines and verifies…

Q: Typically, bankers require potential borrowers to provide audited financial documents with their…

A: Financial statement auditing is described as reviewing an entity's financial statements and other…

Q: Which of the following controls will most likely justify a reduced assessed level ofcontrol risk for…

A: Given: The justification of the reduced assessed level of the risks of control using the control…

Q: During the audit of Albert Eistein, what relevant assertion should be used to record loans…

A: “Since you have asked multiple questions, we will solve the first question for you.  If you want a…

Q: Select the necessary words from the list of possibilities to complete the following statements.…

A: "Fill in the blanks" refers to a type of exercise or activity where a statement or a text is…

Q: From the following statements, identify the statement/s that will not participate in the audit of an…

A: Bank Reconciliation Statement The purpose of preparing the bank reconciliation statement to know the…

Q: In order to make sure that loans are properly classified, the auditor would:   a. Examine due…

A: Audit is an independent examination of the financial staemetnts of an entity to present a true and a…

Q: Which of the following provides the highest-quality evidence regarding the Valuation of recorded…

A: Performing the Analytical procedures provides the highest-quality evidence regarding the Valuation…

Q: Banks are specifically interested in accounts receivable and inventory as these are collateral for a…

A: Account Receivables are the current asset of the company. It is listed in balance sheet of the…

Q: 30 Which of the following is not a principal objective in auditing accounts receivable?   Group of…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: The auditor would like to determine any cash restriction. Which of the following audit procedures…

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Q: Which of the following audit procedures is least effective for detecting unrecorded long-term debt…

A: Lets understand the basics. Management needs to perform an audit procedure in order to express an…

Q: Evidence comes in various types and has different degrees of reliability. Below are some pairs of…

A: The auditors are professional who possesses accounting, auditing, and taxation expertise. The…

Q: Which among the following types of audit evidence can be considered the most reliable? a. Verbal…

A: Please see the next step for the solution

Q: What is the role of the Core Principles of Effective Bank Supervision as it relates to operational…

A: Core Principles for Effective Banking Supervision that Supervisors across the globe may consider…

Q: Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank…

A: Bank Reconciliation Statement is a statement document that reconciles the difference in the cash…

Q: Choose the one correct answer. You are the auditor of a company and you came upon the inspection of…

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Q: The auditor would like to determine any cash restriction. Which of the following audit procedures…

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Q: When auditing contingent liabilities, which of the following procedures would be MOST effective? a.…

A: One kind of potential financial obligation known as a contingent liability is one that is predicated…

Q: Confirmation of individual accounts receivable balances directly with debtors will, of itself,…

A: The auditor would normally confirm the balances on balance sheet by using external confirmation…

Q: Which of the following are audit evidences? a) Inspecting non-current/fixed assets b) An item of…

A: Audit Evidence: It refers to the information that the auditor uses in arriving at a conclusion on…

Q: Which of the following procedures would most likely be performed during planning?a. Surprise…

A: Identifying related parties would most likely be performed during planning.

Q: Preparing bank reconciliation statement is: Select one: a. Not necessary when a perpetual inventory…

A: Internal control system of an entity is a set of measures that are compiled with a view to prevent…

Q: Which control activity is the entity implementing when credit and debt memorandums are prenumbered…

A: Control activities helps in assuring that necessary actions are taken to address risks to the…

Q: udit reports of banks.

A: Today, a lot of risks are associated with the banking sector. The banking sector is trying to reduce…

Q: What special problem do off-balance-sheet activities present to bank regulators, and what have they…

A: Off- Balance sheet activities or items includes the resources and obligations which are not recorded…

Q: following would the auditor most likely perform when auditing the bank reconciliation for a December…

A: When auditing the bank reconciliation statement by the auditor they are various procedures that are…

Q: determine its proper allowance for loan losses

A: Option a is wrong because by making visits to the business sites, auditor cannot help in determining…

Q: If a bank is in a 'state of continuing inability or unwillingness to maintain a condition of…

A: Liquidity is the risk to a bank's earnings and capital arising from its inability to timely meet…

Q: Which of the following types of receivables would not deserve the special attention of the auditor?…

A: Audit is the process of checking and verifying the financial statements in business and to analyse…

Characteristics of Bonds