AUDITING A PRACTICAL APPROACH
WITH DATA ANALYTICS 2ND EDITION
RAYMOND JOHNSON LAURA DAVIS WILEY
ROBYN MORONEY SOLUTIONS MANUAL
FINAL STUDY GUIDE 2026 SOLVED
QUESTIONS FULLY CORRECT
⫸ By preparing a four-column bank reconciliation ("proof of cash") at
year-end, an auditor will generally be able to detect: Answer: An
unrecorded deposit made at the bank at the end of the month.
⫸ Kiting would least likely be detected by: Answer: Comparing
customer remittance advices with recorded disbursements in the cash
disbursements journal.
⫸ Your client left the cash receipts journal open after year-end for an
extra day and included January 1 cash receipts in the 12/31/XX totals.
All of those cash receipts were due to cash sales. Assuming the client
uses a periodic inventory system with a 12/31/XX count of the physical
inventory, which of the following is most likely to be true relating to the
year XX financial statements?
A) Sales are understated.
B) Accounts receivable are understated.
C) Inventory is overstated.
D) Net income is overstated. Answer: D) Net income is overstated.
, ⫸ An internal control questionnaire indicates that an approved receiving
report is required to accompany every check request for payment of
merchandise. Which of the following procedures provides the best
evidence on operating effectiveness?
A) Select and examine receiving reports and test whether the related
canceled checks are dated no earlier than the receiving reports.
B) Select and examine receiving reports and test whether the related
canceled checks are dated no later than the receiving reports.
C) Select and examine canceled checks and test whether the related
receiving reports are dated no earlier than the checks.
D) Select and examine canceled checks and test whether the related
receiving reports are dated no later than the checks. Answer: D) Select
and examine canceled checks and test whether the related receiving
reports are dated no later than the checks.
⫸ By preparing a four-column bank reconciliation ("proof of cash") at
year-end, an auditor will generally not be able to detect: Answer: A
second payment of an account payable which had already been paid in
full two months earlier.
⫸ Which procedure is an auditor most likely to use to detect a check
outstanding at year-end that was not recorded as outstanding on the year-
end bank reconciliation? Answer: Receive a cutoff statement directly
from the client's bank.
⫸ An auditor may obtain information on the December 31 month-end
balance per bank in which of the following?
WITH DATA ANALYTICS 2ND EDITION
RAYMOND JOHNSON LAURA DAVIS WILEY
ROBYN MORONEY SOLUTIONS MANUAL
FINAL STUDY GUIDE 2026 SOLVED
QUESTIONS FULLY CORRECT
⫸ By preparing a four-column bank reconciliation ("proof of cash") at
year-end, an auditor will generally be able to detect: Answer: An
unrecorded deposit made at the bank at the end of the month.
⫸ Kiting would least likely be detected by: Answer: Comparing
customer remittance advices with recorded disbursements in the cash
disbursements journal.
⫸ Your client left the cash receipts journal open after year-end for an
extra day and included January 1 cash receipts in the 12/31/XX totals.
All of those cash receipts were due to cash sales. Assuming the client
uses a periodic inventory system with a 12/31/XX count of the physical
inventory, which of the following is most likely to be true relating to the
year XX financial statements?
A) Sales are understated.
B) Accounts receivable are understated.
C) Inventory is overstated.
D) Net income is overstated. Answer: D) Net income is overstated.
, ⫸ An internal control questionnaire indicates that an approved receiving
report is required to accompany every check request for payment of
merchandise. Which of the following procedures provides the best
evidence on operating effectiveness?
A) Select and examine receiving reports and test whether the related
canceled checks are dated no earlier than the receiving reports.
B) Select and examine receiving reports and test whether the related
canceled checks are dated no later than the receiving reports.
C) Select and examine canceled checks and test whether the related
receiving reports are dated no earlier than the checks.
D) Select and examine canceled checks and test whether the related
receiving reports are dated no later than the checks. Answer: D) Select
and examine canceled checks and test whether the related receiving
reports are dated no later than the checks.
⫸ By preparing a four-column bank reconciliation ("proof of cash") at
year-end, an auditor will generally not be able to detect: Answer: A
second payment of an account payable which had already been paid in
full two months earlier.
⫸ Which procedure is an auditor most likely to use to detect a check
outstanding at year-end that was not recorded as outstanding on the year-
end bank reconciliation? Answer: Receive a cutoff statement directly
from the client's bank.
⫸ An auditor may obtain information on the December 31 month-end
balance per bank in which of the following?
