Cash reconciliations can be tested via __________.

reperformance

physical inventory

observation

disclosure

counting

It is important to verify __________ of both cash receipts and cash disbursements.

existence

deviation

disclosure

consideration

cutoff

payments

Cash confirmations need to be mailed under the control of the __________.

bank

president

client

AICPA

auditor

Auditors are often concerned with the __________ of cash, as this is where most misstatements occur.

inventory

overstatement

disclosure

existence

understatement

Cutoff bank statements include activity for the period __________ the period being audited.

after

disclosing

before

overlapping

inclusive of

Retirements may also be tested for __________ and supporting work orders.

recording

expense

authorization

purchase

capitalization

Auditors may __________ the beginning balance of plant assets by reference to the prior year audit.

consider

ignore

value

cost

verify

Auditors need to confirm that the __________ ledgers agree in total to the general ledgers.

work

old

change

subsidiary

analytical

A summary analysis of the property accounts indicates additions and __________.

statements

decisions

intentions

retirements

purchases

Auditors need to test __________ from construction in progress to property.

deletions

transfers

disposals

additions

It is important for the auditor to verify that the controls described by the employees during the auditor's survey of controls over property, plant, and equipment have actually been __________.

documented

agreed upon

implemented

written

designed

Auditors must confirm that the __________ of Property, Plant, and Equipment agree with the general ledger.

documents

detail ledgers

serial numbers

asset numbers

controls

After obtaining an understanding of the client and its environment, auditors must identify the __________ risks related to the accounts.

inherent

audit

detection

error

fraud

Which of the following would the auditor NOT be testing for by examining lease agreements?

valuation

estimates

existence

presentation

rights

Auditors test effectiveness of controls to ensure they can justify their planned levels of __________ risk.

effective

inherent

control

detection

fraud

Cash analyses need to be __________ to the general ledger.

counted

reconciled

transferred

closed

confirmed

It is necessary to __________ the client's cutoff of cash transactions.

adjust

verify

observe

modify

recreate

perform

After auditing cash, it is important to evaluate proper financial statement presentation and __________ of cash.

counting

inventory

misstatement

adjusting

disclosure

Analyzing bank transfers at the end of the period being audited and the beginning of the next period helps detect __________.

transfers

kiting

confirmation

reconciliation

modification