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A “proof of cash”
A proof of cash is an audit technique designed to roll forward each line of the bank reconciliation from one period to the next. The beginning balance of the bank is compared to the beginning balance of the book and the receipts and disbursements are traced to the ending balances.
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When an auditor requires verification of material accounts receivable balances, they would most likely:
A “positive confirmation” requires the recipient to respond affirmatively to the auditor regarding the account balance. The positive confirmation is used to confirm material amounts.
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When no response is received from a positive confirmation the auditor should:
A “positive confirmation” requires an affirmative response. If during the course of an audit a “positive confirmation” is not received, it is incumbent upon the auditor to follow up on outstanding confirmations, resending the confirmation if no response is received.
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Of the following elements, which is applicable to a CPA firm's quality control policy and procedures in an audit practice?
Performance of the engagement is one of the 6 interrelated elements of quality control.
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A basic objective of a CPA firm is to provide professional services that conform to professional standards. Reasonable assurance of achieving this basic objective is provided through:
A system of quality control establishes policies and procedures that provide reasonable assurance of conforming with professional standards.
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Of the following, which is not an instance to use an Emphasis of Matter paragraph?
The only other time to use this paragraph would be when subsequent events lead to a change in the audit opinion.
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