Professional Documents
Culture Documents
Modern Auditing:
Auditing:
Assurance
Assurance Services
Services and
and the
the Integrity
Integrity
th
of
Financial
Reporting,
8
of Financial Reporting, 8th Edition
Edition
William C. Boynton
Raymond N. Johnson
Portland State University
Chapter
Chapter Overview
Overview
Auditing
Auditing Investments
Investments
Investments
Investments Audit
Audit Objectives
Objectives
Investments
Investments
Understanding the Entity and
Environment
Analytical Procedures
Inherent Risk
Consideration
Consideration of
of Internal
Internal Controls
Controls
Common
Common Documents
Documents and
and Records
Records
Stock certificate
Bond certificate
Bond indenture
Brokers advice
Consideration
Consideration of
of Internal
Internal Controls
Controls
Common
Common Documents
Documents and
and Records
Records
Brokers statement
Functions
Functions and
and Related
Related Controls
Controls
Authorize Investment Transactions
Purchasing securities
Selling securities
Receiving securities
Safeguarding securities
Delivering securities
Receiving periodic income
Functions
Functions and
and Related
Related Controls
Controls
Record Transactions
Settle Transactions
Receiving cash
Disbursing cash
Assessing investment performance and
reporting
Preliminary
Preliminary Audit
Audit Strategies
Strategies for
for
Investments
Investments
Substantive
Substantive Tests
Tests of
of Investments
Investments
Initial Procedures
Analytical Procedures
Substantive
Substantive Tests
Tests of
of Investments
Investments
Tests of Details of Balances
Substantive
Substantive Tests
Tests of
of Investments
Investments
Auditing the Fair Value of
Investments
Study
Study Break
Break
1. This document is an engraved,
prenumbered form showing the
number of bonds owned by a
bondholder.
A.
B.
C.
D.
Stock certificate
Bond certificate
Bond indenture
Brokers advice
B. Bond certificate
Study
Study Break
Break
2. While recording investing transactions,
all of the following functions need to be
carried out, except:
A. Recording purchases, sales, and income
B. Recording market adjustments and
reclassifications
C. Reviewing purchases, sales, and income
transactions
D. Assessing investment performance and
reporting
D. Assessing investment performance and
reporting
Study
Study Break
Break
3. All of the following are proper
classification for investments,
except:
A.
B.
C.
D.
Held-to-maturity securities
Daily securities
Trading securities
Available-for-sale securities
B. Daily securities
Auditing
Auditing Cash
Cash Balances
Balances
Cash
Cash Balances
Balances Audit
Audit Objectives
Objectives
Cash
Cash Balances
Balances
Analytical Procedures
Inherent Risk
Preliminary
Preliminary Audit
Audit Strategies
Strategies for
for
Cash
Cash Balances
Balances
Substantive
Substantive Tests
Tests for
for Cash
Cash
Balances
Balances
Initial Procedures
Analytical Procedures
Substantive
Substantive Tests
Tests for
for Cash
Cash
Balances
Balances
Tests of Details of Transactions
Perform Cash Cutoff Tests
Cash Receipts
Cash Disbursements
Kiting
Bank Transfer Schedule
Substantive
Substantive Tests
Tests for
for Cash
Cash
Balances
Balances
Tests of Details of Transactions
Count Cash on Hand
Cash Counts
Substantive
Substantive Tests
Tests for
for Cash
Cash
Balances
Balances
Tests of Details of Balances
Study
Study Break
Break
4. Cash is related to all of the
following cycles, except:
A.
B.
C.
D.
Revenue Cycle
Financing Cycle
Expenditure Cycle
All of the Above
Study
Study Break
Break
5. This test of details of transactions
for cash balances involves the
counting of all undeposited cash
receipts and change funds.
A.
B.
C.
D.
Study
Study Break
Break
6. ______ is a form of fraud the
results in the deliberate
misappropriation of cash receipts.
A.
B.
C.
D.
Kiting
Cash Counts
Compensating Balance
Lapping
D. Lapping