11. Which of the following internal controls most likely would reduce the risk of diversion of customer receipts by an entity's employees?
A. A bank lock box system.
B. Prenumbered remittance advices.
C. Monthly bank reconciliations.
D. Daily deposit of cash receipts.
12. The least crucial element of internal control over cash is
A. Separation of cash record-keeping from custody of cash.
B. Preparation of the monthly bank reconciliation.
C. Batch processing of checks.
D. Separation of cash receipts from cash disbursements.
14. An unrecorded check issued during the last week of the year would most likely be discovered by the auditor when the
A. Check register for the last month is reviewed.
B. Cutoff bank statement is reconciled.
C. Bank confirmation is reviewed.
D. Search for unrecorded liabilities is performed.
16. An interbank transfer schedule
A. Is another name for the proof of cash.
B. Helps the auditor test for kiting.
C. Is on a standard bank confirmation.
D. Is used to examine client bank reconciliations.
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