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:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, often applied in problem-solving and decision-making processes.

Speech Therapist

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Interpreter

A person who translates oral or sign language communication between speakers of different languages.

Impaired Verbal Communication

A condition characterized by a decreased, delayed, or nonexistent ability to receive, process, transmit, and use a system of symbols.