Significant Findings Are to Be Documented by the Auditor,including Actions

question 105

Multiple Choice

Significant findings are to be documented by the auditor,including actions taken to address them and the basis for the final conclusion reached.Findings that might be significant include

• A)accounting for complex or unusual transactions or accounting estimates or uncertainties
• B)results of audit procedures indicating that the financial statements or disclosure are not misstated or the need for an auditor to revise his previous assessment of the risk of misstatement
• C)circumstances that made it relatively easy for the auditor to apply auditing procedures
• D)findings that could result in modifications to management's report
• E)adjustments that the auditor has proposed to the financial statements
• F)both A and E
• G)both B and D
• H)both D and E

Understand the role of internal controls in managing cash.

Distinguish between cash, cash equivalents, and other types of financial instruments.

Understand the implications of NSF checks and bank service charges on cash management.

Calculate and interpret the Days' Cash on Hand ratio.

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Definitions:

Ordinary Annuity

Identical sums disbursed following each period within an allotted timeframe.

Conditional Sale Contract

A contract agreement where the sale is contingent upon fulfilling certain conditions or terms.

Compounded Monthly

The process by which interest is calculated on both the principal and the accumulated interest on a monthly basis.

Deferred Annuity

An annuity contract that delays payments until the investor elects to receive them, often at retirement.