The Cash Account Is Involved In Which Cycle

Question: The cash account is involved in which cycle?

Multiple Choice

Revenue and collection.

Acquisition and expenditure.

Production and conversion.

All of the choices are correct.

Answer: All of the choices are correct.

Question:

Answer: Examine a representative sample of signed checks and determine that the signatures are authorized in the corporate signature book.

Question:

Answer: The auditor, client and bank must all register with Confirmation for the electronic confirmation process to be possible.

Question: When counting cash on hand the auditor must exercise control over all cash and other negotiable assets to prevent

Multiple Choice

Theft.

Collusion.

Substitution of stolen funds.

Kiting.

Answer: Substitution of stolen funds.

Question: When a fraud perpetrator embezzles company funds for the purpose of buying gifts for co-workers, the fraudster’s motive is said to be:

Multiple Choice

Psychotic

Egocentric

Ideological

Economic

Answer: Economic

Question:

Answer: Establishing work teams that share responsibilities, performance, and bonuses based on collective efforts.

Question:

Answer: Taking unfair or dishonest advantage of uninformed individuals

Question:

Answer: Fraud it most common when motive, opportunity and rationalization all occur together.

Question:

Answer: Cash disbursement and bank statement reconciliation responsibilities are restricted to the cashier to improve accountability.

Question:

Answer: Internal auditor cannot locate several credit memos to support reductions of customers’ balances.