An Auditor Should Trace Cancelled Cheques and Cleared Deposits for the Last

question 66

Multiple Choice

An auditor should trace cancelled cheques and cleared deposits for the last part of the current audit period and the 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 cheques 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:

Equipment Options

Refers to the variety of choices available for machinery and tools required for the production process or offered to customers.

Qualified Drivers

Individuals who have met specific standards and hold the necessary licenses to operate vehicles professionally.

Transportation Management System (TMS)

A subset of supply chain management concerning transportation operations, using technology to optimize, plan, and execute the physical movement of goods.

Routing And Scheduling

The process of determining the most efficient routes and schedules for transportation of goods to optimize delivery times and reduce costs.