Obtaining a Schedule of Bank Transfers Between the Auditee's Accounts

question 52

Multiple Choice

Obtaining a schedule of bank transfers between the auditee's accounts a few days before and after the year-end date and testing the propriety of items included,is a procedure done primarily to detect what type of misstatement?

• A)Overstatement of Accounts receivable due to lapping
• B)Theft of cash receipts from customers
• C)Cheques written before year-end but not mailed until after year-end.
• D)Overstatement of cash balances due to cheque kiting.

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Definitions:

Obsessive-Compulsive Disorder

A mental disorder characterized by intrusive thoughts (obsessions) and repetitive behaviors (compulsions).

Panic Disorder

A mental health condition characterized by sudden and recurrent panic attacks, often accompanied by ongoing fear of future attacks and significant behavior change to avoid them.

Conversion Disorder

A mental health condition where psychological stress is expressed through physical symptoms with no identifiable physical cause.

Addiction

A chronic condition characterized by the compulsive use of substances or engagement in behaviors despite harmful consequences.