Principles Of Auditing & Other Assurance Services

21st Edition

ISBN: 9781259916984

Author: WHITTINGTON, Ray, Pany, Kurt

Publisher: Mcgraw-hill Education,

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Textbook Question

Chapter 10, Problem 38HOQ

The auditors suspect that a client’s cashier is misappropriating cash receipts for personal use by lapping customer checks received in the mail. In attempting to uncover this embezzlement scheme, the auditors most likely would compare the:

(1) Details of bank deposit slips with details of credits to customer accounts.
(2) Daily cash summaries with the sums of the cash receipts journal entries.
(3) Individual bank deposit slips with the details of the monthly bank statements.
(4) Dates uncollectible accounts are authorized to be written off with the dates the write-offs are actually recorded.

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Chapter 10, Problem 38GOQ

Chapter 10, Problem 38IOQ

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An auditor suspects that a client's cashier is misappropriating cash receipts for personal use by lapping customer checks received in the mail. In attempting to uncover this embezzlement scheme, the auditor most likely would compare the Group of answer choices Daily cash summaries with the sums of the cash receipts journal entries. Individual bank deposit slips with the details of the monthly bank statements. Dates checks are deposited per bank statements with the dates remittance credits are recorded. Dates uncollectible accounts are authorized to be written off with the dates the write-offs are actually recorded.

When auditors perform the bank reconciliation test, what would be the appropriate audit procedure for the cash receipts reported on the bank statement but not on the company cash account? A. Auditors investigate whether those cash payments are recorded in the cash payment journal. B. Auditors investigate whether those cash receipts are recorded in the cash receipt journal. C. Auditors trace those cash receipt transactions to bank statements issued in subsequent periods to see if they appear in bank statements after the balance date. D. Unpresented cheques need to be traced to subsequent bank statements. E. All of the options are correct.

An auditor suspects that certain client employees are ordering merchandise for themselves over the Internet without recording the purchase or receipt of the merchandise. When vendors' invoices arrive, one of the employees approves the invoices for payment. After the invoices are paid, the employee destroys the invoices and the related vouchers. In gathering evidence regarding the fraud, the auditor most likely would select items for testing from the file of all: Multiple Choice Cash disbursements. Approved vouchers. Receiving reports. Vendors' invoices.

Chapter 10 Solutions

Principles Of Auditing & Other Assurance Services

Ch. 10 - Prob. 1RQ Ch. 10 - Prob. 2RQ Ch. 10 - Prob. 3RQ Ch. 10 - Prob. 4RQ Ch. 10 - Prob. 5RQ Ch. 10 - Prob. 6RQ Ch. 10 - Prob. 7RQ Ch. 10 - Prob. 8RQ Ch. 10 - Prob. 9RQ Ch. 10 - Prob. 10RQ

Ch. 10 - Prepare an example of lapping of cash receipts,...Ch. 10 - Prob. 12RQ Ch. 10 - Prob. 13RQ Ch. 10 - Prob. 14RQ Ch. 10 - Prob. 15RQ Ch. 10 - Prob. 16RQ Ch. 10 - Explain two procedures by which auditors may...Ch. 10 - Prob. 18RQ Ch. 10 - Prob. 19RQ Ch. 10 - Prob. 20RQ Ch. 10 - Prob. 21RQ Ch. 10 - Prob. 22RQ Ch. 10 - Prob. 23RQ Ch. 10 - Prob. 24RQ Ch. 10 - Prob. 25RQ Ch. 10 - Prob. 26QRA Ch. 10 - Henry Mills is responsible for preparing checks,...Ch. 10 - During the first few months of the year, John...Ch. 10 - Prob. 29QRA Ch. 10 - Prob. 30QRA Ch. 10 - Prob. 31QRA Ch. 10 - Prob. 32QRA Ch. 10 - Prob. 33QRA Ch. 10 - Prob. 34QRA Ch. 10 - Prob. 35QRA Ch. 10 - Prob. 36QRA Ch. 10 - Prob. 37QRA Ch. 10 - Select the best answer for each of the following...Ch. 10 - Prob. 38BOQ Ch. 10 - Prob. 38COQ Ch. 10 - Prob. 38DOQ Ch. 10 - Prob. 38EOQ Ch. 10 - Prob. 38FOQ Ch. 10 - Reconciliation of the bank account should not be...Ch. 10 - The auditors suspect that a clients cashier is...Ch. 10 - Prob. 38IOQ Ch. 10 - Prob. 38JOQ Ch. 10 - Prob. 38KOQ Ch. 10 - Prob. 38LOQ Ch. 10 - Which of the following represents a correct...Ch. 10 - Which of the following correctly identifies a risk...Ch. 10 - Which of the following correctly identifies a risk...Ch. 10 - Prob. 39DOQ Ch. 10 - Prob. 39EOQ Ch. 10 - Prob. 39FOQ Ch. 10 - Prob. 40OQ Ch. 10 - Prob. 41OQ Ch. 10 - Prob. 42OQ Ch. 10 - Prob. 43OQ Ch. 10 - Prob. 44OQ Ch. 10 - Prob. 45OQ Ch. 10 - Prob. 46P Ch. 10 - Prob. 47P Ch. 10 - Prob. 48P Ch. 10 - Prob. 49P Ch. 10 - Prob. 50ITC Ch. 10 - Prob. 51ITC Ch. 10 - Prob. 52RDC Ch. 10 - Prob. 53EC

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An auditor is considering whether the 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 and disbursements.

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