Is a negative (credit balance) in the cash in bank account resulting from overpayment of checks in excess of the amount of deposit.

Customarily prepared monthly by the client as part of it internal control over cash.

Checks delivered to payees that are not encashed within a relatively long period of time, normally 6 nonchs or more.

Applies to both initial and subsequent measurement ot an asset or liability

One of the most important assets of a business.One of the most important assets of a business.

The auditor should plan and perform an audit with what attitude?

is a systematic process by which a competent, independent person objectively obtains and evaluates evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users

Irregularity whereby an overstatement of cash is created by a cash transfer between bank accounts.

Are short-term, highly liquid instruments that are both easily convertible to known amount of cash.

An audit approach that begins with an assessment of the types and likelihood of misstatement in account balances.

A concept relating to the accumulation of the audit evidence necessary for the auditor to conclude that there are no material misstatements in the financial statements taken as a whole.

Establishes the independent auditor's overall responsibilities when conducting an audit of financial statements.

Initial susceptibility of a transaction or accounting adjustment to be recorded in error, or for the transaction not to be recorded in the absence of internal controls.

Relates more on subsequent measurement of depreciable, amortizable and depletable asset

the difference beetween the amount of line credit and the amount that was actually borrowed

Includes collections awaiting deposit and other current funds held as of the reporting date.

Includes deposits in banks that are available for immediate withdrawal and unrestricted use.

Also called four-column bank reconciliation, is prepared to reconcile not only the account balance but also the account transactions occurring during a specified period

Is done by misappropriating collections from one customer and concealing this defalcation by applying subsequent collection made fron another custoner.

Standard medium of exchange and the basis of accounting measurements.

Risk that the audit procedures will fail to detect a material misstatement

cash is ____ when it fails to meet the Minimum assets for recognition

Risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.

cash is ____ when it meets the requirements for asset recognition and is available for unrestricted use in current operations.

Arise when bank balances are overdrawn.Arise when bank balances are overdrawn.

Normally prepared 8-10 business days after the reporting date.

Minimum anount that must be maintained in an entity's bank account as support for funds borzowed from the bank.

Responsible for the preparation and presentation of the financial statements.

Risk that the client's internal control system will fail to prevent or detect a misstatement.

Refers to the audit procedures deemed necessary in the circumstances to achieve the objective of the audit

involves establishing the overall audit strategy for the engagement and developing an audit plan, in order to reduce audit risk to an acceptably low level.

A scheme which has the desire use some entit favorable current ratio may cause some entities to record cash disbursed in the first few days of a new accounting period as disbursements of the preceding period