RIFT

Rift VALLEY UNIVERSITY Bishoftu Campus

Individual Assignment for audit II and its practice

Instruction
Your Assignment must have cover page, on the cover page write name, Id, section, course
and instructor name
Sumiton date June 20/2020

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Part I Multiple Choice Question
1 The auditor’s objectives in the audit of cash are to Consider?
a) the internal control over cash transactions b) Substantiate the existence of the recorded cash
c) the clerical accuracy of the cash schedules d) all e) None
2. In audit procedure that may used to test uncover fraud in cash receipt include
a) Examine general ledger cash account
b) Test to performed to detect fraud on cash
c) Reconciliation of account receivable
d) d) all
3. A proof of cash is normally used by auditor
a) For all engagements.
b) To test the transactions process when controls over cash are weak.
c) When control risk for cash is low.
d) When lapping is suspected.
4. in cash audit, auditors use
a) Bank confirmation for deposits C. preparation of bank reconciliation
b) Clarity of payment with authorized document d) all
5. in performing test of control over cash payment, which of the following
Sample method would be most appropriate?
a) Monetary unit b) attributive sampling c) Variable sampling
6. The risk that the auditors’ conclusions based on a sample risk might be different from the
conclusion they would reach if they examined every item in the entire population.
a) audit sampling b) sampling risk c) sampling error d) A and B e) B and C
7. ______is the application of an audit procedure less than 100% of the items within an
account balance or class of transactions for the purpose of evaluating some characteristic
a) Sampling procedure b) Audit sampling c) sample d) probability
8. The aim of sampling as related to auditing, whether statistical or no statistical
a) to draw conclusions about a large group of data,
b) The sample will allow the auditors to make accurate inferences about the population.
c) The projected sample results and the true condition d) all
9. The best example of possible misstatement of the cash transactions are
a) Receipt of cash with proper recording
b) Payment may have made with actual withdrawal
c) Duplicate payments
d) Normal payments or payments for none fictitious persons

Part II Discussion question

1. Define audit sampling. Why do auditor sample used instead of examining all
accounting transaction?

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2. Distinguish between statistical and non-statistical sampling. What are the advantage
and disadvantage using statistical sampling?
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3. Discuss audit procedure used in cash audit process?
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4. Cash kiting fraud on cash balance. Discuss it by giving example For cash kiting ?
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Good Luck!!