1- The presentation objective for cash relates to Select answer from the options below accounting frameworks. cash transactions and cash balances. cash transactions only. the audit report. 2- Which of the following does NOT increase the risk of fraud occurring as it relates to cash in the bank? Select answer from the options below use of multiple cash registers one person handling and counting all cash large of amount of cash receipts majority of payments made with bank transfers 3- The imprest petty cash fund Select answer from the options below is controlled by the accounting department. is replenished when authorized petty cash vouchers are used for a cheque requisition. is replenished when customers pay their accounts. is used for asset purchases. 4- Kiting is possible when Select answer from the options below the auditor does not review bank transfers. there is improper segregation of duties of issuing and recording cheques. there is independent review of issue and recording of cheques. bank transfers happen at year end. 5- Which of the following is NOT a characteristic that the person assigned the authority and responsibility of investing transactions should have? Select answer from the options below integrity ability to assess investment risks positive outlook on the economy knowledge of investments 6- Vouching entries in the investment accounts to ensure they were recorded correctly is classified as a(n) Select answer from the options below test of details of balances. test of details of transactions. initial procedure. analytical procedure. 7- Jeremy Smith, CPA, examines the disclosures of investments to ensure that all of the pledging of investments is included in the notes to the financial statements. Jeremy is gathering evidence related to the assertion of Select answer from the options below accuracy, valuation, and allocation. completeness. rights and obligations. classification. 8- If there are a few immaterial transactions that make up the investment balance, auditors will assess inherent risk as Select answer from the options below non-existent. low. insignificant. high. 9- Inflows of cash are represented by Select answer from the options below sales revenue and issue of shares transactions. sales revenue and payroll transactions. equipment sales and payroll transactions. equipment purchases and sales transactions. 10- Which of the following does NOT describe the concept of lapping? Select answer from the options below misappropriation is always temporary irregularity resulting in the misappropriation of cash receipts usually associated with customer collections deliberate act performed by an individual for their own benefit 11- At the end of the audit, the auditor reconsiders their assessment of internal control and fraud risk. To perform this evaluation, auditors must Select answer from the options below consider managements opinion on the significance of the qualitative factors involved. consider the involvement of those c.

1. 1- The presentation objective for cash relates to
Select answer from the options below
accounting frameworks.
cash transactions and cash balances.
cash transactions only.
the audit report.
2- Which of the following does NOT increase the risk of fraud occurring as it relates to cash in
the bank?
Select answer from the options below
use of multiple cash registers
one person handling and counting all cash
large of amount of cash receipts
majority of payments made with bank transfers
3- The imprest petty cash fund
Select answer from the options below
is controlled by the accounting department.
is replenished when authorized petty cash vouchers are used for a cheque requisition.
is replenished when customers pay their accounts.
is used for asset purchases.
4- Kiting is possible when
Select answer from the options below
the auditor does not review bank transfers.
there is improper segregation of duties of issuing and recording cheques.
there is independent review of issue and recording of cheques.
bank transfers happen at year end.
5- Which of the following is NOT a characteristic that the person assigned the authority and
responsibility of investing transactions should have?
Select answer from the options below
integrity
ability to assess investment risks
positive outlook on the economy

2. knowledge of investments
6- Vouching entries in the investment accounts to ensure they were recorded correctly is
classified as a(n)
Select answer from the options below
test of details of balances.
test of details of transactions.
initial procedure.
analytical procedure.
7- Jeremy Smith, CPA, examines the disclosures of investments to ensure that all of the pledging
of investments is included in the notes to the financial statements. Jeremy is gathering evidence
related to the assertion of
Select answer from the options below
accuracy, valuation, and allocation.
completeness.
rights and obligations.
classification.
8- If there are a few immaterial transactions that make up the investment balance, auditors will
assess inherent risk as
Select answer from the options below
non-existent.
low.
insignificant.
high.
9- Inflows of cash are represented by
Select answer from the options below
sales revenue and issue of shares transactions.
sales revenue and payroll transactions.
equipment sales and payroll transactions.
equipment purchases and sales transactions.
10- Which of the following does NOT describe the concept of lapping?
Select answer from the options below

3. misappropriation is always temporary
irregularity resulting in the misappropriation of cash receipts
usually associated with customer collections
deliberate act performed by an individual for their own benefit
11- At the end of the audit, the auditor reconsiders their assessment of internal control and fraud
risk. To perform this evaluation, auditors must
Select answer from the options below
consider managements opinion on the significance of the qualitative factors involved.
consider the involvement of those charged with governance.
use professional scepticism.
use professional judgement.
12- Those charged with governance generally refers to
Select answer from the options below
the external auditors of the entity.
creditors of the entity.
the board of directors.
in-house lawyers.
13- If a company announces its intention to seek protection from creditors pursuant to the
applicable laws, the company is
Select answer from the options below
not able to hire auditors.
a viable entity.
not a going concern.
a going concern.
14- After year end, and before the audit report date, a lawsuit is settled for an amount
significantly lower than the amount that was accrued in the financial statements at year end.
Which of the following is accurate?
Select answer from the options below
this is a type 2 subsequent event
the financial statements do not need to be adjusted as the settlement was lower than expected
only disclosure in the notes to the financial statements is necessary
accrued liabilities in the financial statements need to be adjusted to reflect the lower amount

4. 15- An adverse opinion is issued when
Select answer from the options below
a GAAP departure causes the statements to be materially, but not pervasively misstated.
a GAAP departure causes the financial statements to be materially and pervasively misstated.
a scope limitation exists that has both a material and pervasive effect on the statements.
the financial statements present fairly the financial position of the entity.
16- Which of the following is NOT a role of those people who are charged with governance?
Select answer from the options below
supervision
direction
control
auditing
17- What is the impact if the auditor discovers that the client forgot to accrue the utility expense?
Select answer from the options below
net income is understated
revenue is understated
liabilities are understated
expenses are overstated
18- Which of the following is a type 2 subsequent event?
Select answer from the options below
amount received on an insurance claim that was being negotiated at year end
issuance of debt securities after year end
settlement of a lawsuit after the reporting period for an amount different than originally
estimated
bankruptcy of a customer subsequent to year end, which would be considered when evaluating
the adequacy of the allowance for doubtful accounts
19- Which of the following is NOT evaluated by the auditor when forming an opinion on the
financial statements?
Select answer from the options below
effect of corrected misstatements
audit evidence obtained

5. whether the statements are prepared in accordance with the applicable reporting framework
effect of unrecorded misstatements
20- Which of the following is included in the introductory paragraph of the auditors report?
Select answer from the options below
auditors opinion on the fair presentation of the financial statements
title of financial statements that have been audited
date of the audit report
reference to summary of significant accounting policies