An Auditor Should Trace Interbank Transfers for the Last Part

question 54

Multiple Choice

An auditor should trace interbank transfers for the last part of the audit period and first part of the subsequent period to detect whether

• A) The cash receipts journal was held open for a few days after the year-end.
• B) The last checks recorded before the year end were actually mailed by the year-end.
• C) Cash balances were overstated because of kiting.
• D) Any unusual payments to or receipts from related parties occurred.

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Definitions:

Miotic

Pertaining to or causing the constriction of the pupil of the eye.

Myopia

A visual condition, also known as nearsightedness, where close objects appear clearly, but distant objects are blurry.

Choroiditis

Inflammation of the choroid, a vascular layer of the eye, leading to vision problems.

Cycloplegia

Paralysis of the ciliary muscle of the eye, resulting in a loss of accommodation and inability to focus on close objects.