1. For the risk of inaccurate recording of disbursements, what is the most likely internal control weakness?
Inadequate segregation of duties in accounts payable
Inadequate training for accounts payable employees
Ineffective controls for matching shipping documents
Ineffective controls for review of supporting documents
2. What is the most common cause of discrepancies in confirmation replies?
Error — incomplete form
Error — time lag
Fraud — collusion
Fraud — kiting
3. Which audit assertion is met when testing accounts payable to related parties?
Completeness
Existence
Presentation
Rights
4. For the risk of failing to record cash sales, what is the most likely internal control weakness?
Inadequate cash register security
Inadequate security of deposits
Ineffective segregation of duties
Ineffective register tape reconciliation
5. When a customer does not respond to a positive confirmation request, which auditor response would be incorrect?
Apply alternative procedures to accounts
No action if enough other responses were received
Send additional confirmations on similar accounts
Send second or third confirmation requests
6. Which of the following internal controls should be present over cash disbursement transactions?
Authorized, independent check signer
Electronic point-of-sale system
Financial institution lockbox
Segregation of sales clerk and cashier duties