1. For the risk of inaccurate recording of disbursements, what is the most likely internal control weakness?

Inadequate segregation of duties in accounts payable Inadequate training for accounts payable employees Ineffective controls for matching shipping documents Ineffective controls for review of supporting documents

2. What is the most common cause of discrepancies in confirmation replies?

Error incomplete form Error time lag Fraud collusion Fraud kiting

3.Which audit assertion is met when testing accounts payable to related parties?

Completeness Existence Presentation Rights

4.For the risk of failing to record cash sales, what is the most likely internal control weakness?

Inadequate cash register security Inadequate security of deposits Ineffective segregation of duties Ineffective register tape reconciliation

5.When a customer does not respond to a positive confirmation request, which auditor response would be incorrect?

Apply alternative procedures to accounts No action if enough other responses were received Send additional confirmations on similar accounts Send second or third confirmation requests

6.Which of the following internal controls should be present over cash disbursement transactions?

Authorized, independent check signer Electronic point-of-sale system Financial institution lockbox Segregation of sales clerk and cashier duties