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1. Which sets of information does an auditor confirm on one form? a. Accounts payable and purchase commitments b. Cash in bank and collateral for loans ability c. Inventory on consignment and contingen d. Accounts receivable and accrued interest receivable 2. The usefulness of the standard bank confirmation request may be limited because the balance employee who completes the form not a third party a. Believe the bank should verify confidential information to b. inspecting the date of the balances requested c. provide year end balances nut rather provide current balances d. know of all the relationships that the bank has with the client 3. Auditors limit tests of sales transactions when they already have evidence s a. Opening and closing inventory balances b. cash receipts and accounts receivable c. shipping and receiving activities d. cutoffs of sales and purchases 4. To gather evidence regarding the year-end bank balance on a ba reconciliation, an auditor would examine all of the following except a. general ledger being audited b. the first month's bank statement after the year c the year-end bank statement the bank d. the bank confirmation response received from 5. The purpose of sending a confirmation request to a bank is a. to appear professional b. confirm information regarding deposit and loan balances c. inform the bank that auditors can write professionally d. request information about the future business opportunities 6. Which is the highest form of evidence when auditing cas a. An original bank statement provided by the audit client b. A copy of the cash account from the general ledger c. A confirmation of the bank balance received from the bank d. A firm assurance from the chief financial officer of the audit client erm investments would use analytical procedures to ascertain the 7. An auditor testing lon a. Existence of unrealized gains or losses in the portfolio b. Completeness of recorded investment income C. classification between current and non-current portfolio d. valuation of marketable equity securities