#. hich of the followin" manipulations of cash transactions would overstate the cash balance on the financial statements3 A# Gnderstatement of outstandin" checks. 5. Dverstatement of outstandin" checks. C. Gnderstatement of deposits in transit. 7. Dverstatement of bank services char"es.
AACSB: Analytic AICPA BB: Industry AICPA FN: Risk Analysis Bloom's: 1nderstand Difficulty: .edium earnin! "b#ecti$e: %&&( Assess t)e risks of material misstatement of recei$ables and re$enue and desi!n furt)er audit *rocedures+ includin! tests of controls and substanti$e *rocedures+ to address t)e risks, -o*ic: Audit of Cas)
%. hich of the followin" is not confirmed on the standard form used for cash balances at financial institutions3 *. Cash checkin" account balances. 5. Cash savin"s account balances. C. &oans payable. "# $ecurities held for the client by the financial institution.
AACSB: Analytic AICPA BB: Industry AICPA FN: .easurement Bloom's: 1nderstand Difficulty: .edium earnin! "b#ecti$e: %&%& Describe tests of controls and substanti$e *rocedures used to audit financial in$estments, -o*ic: Audit of Financial In$estments
(. Internal control over marketable securities is enhanced when: *. $ecurities are held by the cashier. 5. $ecurities are re"istered in the name of the custodian. C. 7etailed records of securities are maintained by the custodian of the securities. "# $ecurities are held under
AACSB: Analytic AICPA BB: Industry AICPA FN: .easurement Bloom's: 1nderstand Difficulty: .edium earnin! "b#ecti$e: %&&6 Describe ty*ical internal controls o$er t)e business *rocesses related to financial in$estments, -o*ic: Financial In$estments
