Question

Identify each of the follow as either a document, a test of details, a test of controls, an actual control activity, a type of control, a risk, an assertion or none of the above.

Someone could steal blank checks

Understandability

Bank reconciliation

Re-performing a bank reconciliation

Management reviewing the bank reconciliation and comparing it with the bank statement

Obtaining an accounts receivable confirmation

2 people opening the mail

Existence

Detective controls

Preparing a receiving report when items arrive

Performing a 3-way match prior to recording of accounts payables

Cash

Employees committing fraud

Sending out 0 balance accounts payable confirmations

Check kiting

Reviewing the voucher packet for evidence of a review

Preparing an invoice

Assessing business risk

Answer 1

Understandability - none of the above

Bank reconciliation - a type of control

Re-performing a bank reconciliation - a test of controls

Management reviewing the bank reconciliation and comparing it with the bank statement - an actual control activity

Obtaining an accounts receivable confirmation - a test of details

2 people opening the mail - an actual control activity

Existence - a test of controls

Detective controls - a type of control

Preparing a receiving report when items arrive - a document

Performing a 3-way match prior to recording of accounts payables - an actual control activity

Cash - an assertion

Employees committing fraud - a risk

Sending out 0 balance accounts payable confirmations - none of the above

Check kiting - a risk

Reviewing the voucher packet for evidence of a review - a test of details

Preparing an invoice - a document

Assessing business risk - a test of controls