For which of the following internal controls would an auditor be least likely to perform tests of internal controls closer to the "as of" date?
A. Withdrawals from Federal Bank of more than $5 million must include a manager's signature.
B. At the end of each day at Federal Bank, the total cash in the vault is reconciled with daily registers of deposits and withdrawals.
C. Federal Bank has just started establishing trusts for its customers and it has only set up ten such trusts. Before making an investment for a trust, bank employees must verify that the investment is in accordance with stated investment policies.
D. On an annual basis, Federal Bank management performs credit checks on its loan customers before determining the value of loans it will not be able to collect on.
Answer: At the end of each day at Federal Bank, the total cash in the vault is reconciled with daily registers of deposits and withdrawals
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Accounting Chapter 7
- When an auditor tests a computerized accounting system, which of the following is true of the test data approach?
- When testing a computerized accounting system, which of the following is false regarding the test data approach?
- Which of the following is false?
- Section 404 of the Sarbanes-Oxley Act includes which of the following?
- The advantages of generalized audit software include all of the following except:
- Which of the following is true of generalized audit software packages?
- An auditor will use the IT test data method in order to gain certain assurances with respect to the
- According to the COSO definition of safeguarding of assets
- AAA & Associates recently finished auditing LinktheEarth Corporation's internal control over financial reporting. AAA found a number of material weaknesses in the entity's internal control. Link the Earth's management remediated all of the weaknesses that AAA found. However, the auditors did not have sufficient time to retest the controls. What report should AAA issue with regards to internal control over financial reporting at year-end?
- A modification of the standard report is required for all of the following conditions except:
- Which of the following statements included in management's assessment of the effectiveness of internal control over financial reporting would be considered acceptable for issuing an unqualified opinion?
- Examples of entity-level controls include
- In the context of an audit of internal controls, the auditor must document all of the following except:
- Management's written representations concerning internal control are
- To obtain an understanding of significant processes and relevant subprocesses, auditors would be least likely to use which of the following techniques?
- Which of the following statements is false?
- Which of the following is true regarding management's documentation of internal controls?
- Which of the following is not an element of management's assessment process for the effectiveness of internal control?
- The PCAOB's definition of internal control over financial reporting specifically mentions all of the following control activities except:
- ACL is an example of
- Which of the following is an advantage of generalized computer audit packages?
- The five step process in the audit of ICFR includes
- The auditor is least likely to use generalized audit software to
- Which of the following audit procedures would an auditor be least likely to perform using a generalized computer audit program?
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