Tests of Receivables

School: Arizona Western College - Course: FIN 672 - Subject: Accounting

Which of the following statements is correct? Auditors conduct physical inspections of securities. Auditors are not allowed to conduct physical inspection of securities. Auditors are not allowed to review documents to check whether the segregation duties are conducted or not. Auditors cannot examine whether all securities are detailed records or not. Solution The correct answer is Auditors conduct physical inspections of securities. Wrong Hide solution Question 2 The objectives of auditing marketable securities include __________. format media quantity accuracy Solution The correct answer is accuracy Wrong Question 1 Which of the following does marketable securities include? Land Certificates of deposit Real estate Inventory

Solution The correct answer is Certificates of deposit Wrong Hide solution Question 2 Which are common tests of internal control over marketable securities? Auditors cannot check financial statements. Auditors cannot calculate dividends to ensure accuracy. Auditors cannot examine whether financial investments are disclosed or not. Auditors examine whether financial investments are disclosed or not. Solution The correct answer is Auditors examine whether financial investments are disclosed or not. Wrong Hide solution Question 3 The objectives of auditing marketable securities include __________. valuation witness quantity format Solution The correct answer is valuation Correct Hide solution Question 4 Which of the following statements are correct?

Auditors are not allowed to confirm accuracy by calculating the value of marketable securities and interest and verifying the accuracy of the math. One of the features of marketable securities is that they are easily converted to cash. One of the features of marketable securities is that it is hard to convert them to cash. Auditors are not allowed to examine whether transactions are recorded or not. Solution The correct answer is One of the features of marketable securities is that they are easily converted to cash. hich are common tests of internal control over marketable securities? Auditors cannot examine whether financial investments are disclosed or not. Auditors cannot check financial statements. Auditors review the organization's investment policies and meeting minutes of the investment committee of the board of directors for authorization to buy and sell marketable securities. Auditors cannot review the meeting minutes of the investment committee of the board of directors for authorization to buy and sell marketable securities. Solution The correct answer is Auditors review the organization's investment policies and meeting minutes of the investment committee of the board of directors for authorization to buy and sell marketable securities. Correct