Refer to Exhibit 10.6. Which of the following represents a reasonable test of controls for cash receipts and cash management controls?
a. Document internal controls over cash by completing the internal control questionnaire or by flowcharting the process.
b. Prepare an independent bank reconciliation.
c. Obtain a bank confirmation.
d. Obtain a bank cutoff statement.
e. All of the above.
Answer: A
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- In which of the following situations would a disclaimer of opinion not be appropriate?
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- Which of the following phrases should not be used when the auditor is qualifying the audit opinion?
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- In which of the following situations would an auditor typically issue an unqualified opinion, but include explanatory language?
- Which of the following describes a situation when an auditor cannot typically issue a standard unqualified audit opinion?
- In which of the following situations would an auditor ordinarily issue an unqualified audit opinion without an explanatory paragraph?
- Which of the following statements is true regarding the auditor's responsibilities related to reporting?
- Which of the following statements is false regarding audit reporting?
- Which of the following is not a typical communication between the auditor and the audit committee?
- Which of the following is the best example of a Type II subsequent event?
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- Management of AllTech, Inc. refuses to sign the management representation letter given to them in the course of the audit on the grounds that it invades the company's privacy. What does this refusal constitute?
- Which of the following statements is false regarding analytical procedures that help auditors assess the overall final presentation of the financial statements?
- Which of the following is not a typical analytical procedure for the completion of the audit?
- If the auditor concludes that there may be a going-concern problem with the client, which of the following is the best course of action for the auditor to follow?
- Which one of the following is false regarding the adequacy of disclosures in a financial statement audit?
- Which of the following is not true regarding accounting estimates?
- When responding to the auditor as a result of the audit client's letter of inquiry, how might the attorney limit the response?
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If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.