When auditing with "fraud awareness", auditors should especially notice and follow up employee activities under which of these conditions? (a) The board of directors reviews and approves all investment 28. transactions. (b) The petty cash box is always locked in the desk of the custodian. (c) Management has published a company code of ethics and sends frequent communication newsletters about it. The company always estimates the inventory but never takes a complete physical count. (d) Of the procedures listed, which is the most likely to detect kiting? (a) 29. Account for bank transfers made during a few days before and after selected dates. (b) Investigate checks that have been outstanding for long periods. (c) Count cash on hand, and compare the detail of cash receipts (log listings) to the cash receipts jounal, accounts receivable postings, and deposit slips. Confirm accounts receivable balances as of a cutoff date. (d) Which of the following should be performed by the persons opening the mail and recording payments? 30. tarthe delivery of the cheks to the bank Restrictive endorsement on all checks. (b) (c) The segregation of all payments made on accounts listed as past due. (d) Entering of payment information into customer accounts