36. Which of the following manipulations of cash transactions would overstate the cash balance on the financial statements? A) Understatement of December cash disbursements. B) Overstatement of December cash disbursements C) Understatement of deposits in transit. D) Overstatement of deposits in transit. 37. Which of the following opinions would not be given by the auditor relative to the client's internal control a. unqualified b. qualified c. adverse d. auditors only render opinions on the financial statements, not on internal control 38. Which of the following cash transfers results in a misstatement of the cash balance on the December 31, 19X7 balance sheet? Bank Transfer Schedule Receipt Recorded Recorded Paid by bank A) 12/31/X7 1/4/X8 1/5/X8 C) 12/31/X7 1/5/X8 Received by bank 12/31/X7 1/4/X8 1/4/X8 1/4/X8 in books 12/31/X7 12/31/X7 12/31/X7 1/4/X8 B) 1/4/X8 D) 1/4/x8 39. Which of the following auditing procedures is ordinarily performed last? Searching for unrecorded liabilities a. b. Confirming accounts payable c. Obtaining a management representation letter d. Testing of accounts receivable transactions 40. To determine that sales transactions have been recorded in the proper accounting period the auditor performs Cut-off test. Which of the following best describes the overall approach used when performing cut-off tests? a. Ascertain that management has included in the representation letter a statement that transactions have been accounted for in the proper accounting period. b. Confirm year-end transactions with regular customers c. Examine cash receipts in the subsequent period . Analyze transactions occurring within a few days before and after year end