$6.$ What types of inquiry techniques might an auditor use when making inquiries of

client personnel? What are the uses of each technique?

$7.$ Discuss the key internal controls that should be present in the processing purchase

orders function in the acquisitions and payment cycle.

$8.$ Discuss the key internal controls that should be present in the receiving goods and

services function in the acquisitions and payment cycle.

$9.$ Listed below are some management assertions made for the acquisition and

payment cycle. For each one, give an example of how the auditor, by using the

documents normally found in the process, can apply an auditing procedure to test the

assertion.

completeness

timing

accuracy

$10.$ Match six of the terms $($a$-$k$)$ with the descriptions$/$definitions provided below $(1-$

$6).$

a$.$ bank reconciliation

b$.$ branch cash account

c$.$ cash equivalents

d$.$ cutoff bank statement

e$.$ general cash account

f$.$ imprest payroll account

g$.$ imprest petty cash fund

h$.$ kiting

i$.$ proof of cash

j$.$ standard bank confirmation form

k$.$ lapping

$1.$ a fund of cash maintained within the company for small cash

acquisitions, expenses, or to cash employees' checks.

$2.$ a form approved by the AICPA and American Bankers' Association

through which the bank responds to the auditor about bank balance and loan

information.

$3.$ excess cash invested in short$-$term, highly liquid investments such as

time deposits, certificates of deposit, and money market funds.

$4.$ the primary bank account for most organizations

$5.$ the transfer of money from one bank account to another and improperly

recording the transfer so that the amount is recorded as an asset in both accounts.

$6.$ the document usually prepared by client personnel of the differences

between the cash balance recorded in the general ledger and the amount in the bank

account