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  • Resuello, Jona G.: Simultaneous Verifications Is Correct Because The Timing of The Performance of Auditing Procedures

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    Jewel Mae Mercado
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    The document discusses an audit theory question about detecting concealed cash shortages. The proposed answer is "simultaneous verifications" because performing auditing procedures simultaneously on items like cash, securities, loans, etc. could help detect if funds were moved between locations or assets converted to cash to hide a shortage. A simultaneous cash count alone would not be sufficient.

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    Audit-Theory-proposal-wce2 (1)

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    The document discusses an audit theory question about detecting concealed cash shortages. The proposed answer is "simultaneous verifications" because performing auditing procedures simultaneously on items like cash, securities, loans, etc. could help detect if funds were moved between locations or assets converted to cash to hide a shortage. A simultaneous cash count alone would not be sufficient.

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    13 views1 page

    Resuello, Jona G.: Simultaneous Verifications Is Correct Because The Timing of The Performance of Auditing Procedures

    Uploaded by

    Jewel Mae Mercado
    The document discusses an audit theory question about detecting concealed cash shortages. The proposed answer is "simultaneous verifications" because performing auditing procedures simultaneously on items like cash, securities, loans, etc. could help detect if funds were moved between locations or assets converted to cash to hide a shortage. A simultaneous cash count alone would not be sufficient.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    WCE2-A20 (AUDIT THEORY) May 2021

    Proponent: Mercado, Jewel Mae


    Resuello, Jona G.

    Question:
    A cash shortage may be concealed by transporting funds from one location to another or by
    converting negotiable assets to cash. Because of this, which of the following is vital?

    o Simultaneous confirmations
    o Simultaneous bank reconciliations
    o Simultaneous verifications
    o Simultaneous surprise cash count
     
    Answer key: 
    Simultaneous surprise cash count

    Proposed answer: 
    Simultaneous verifications

    The requirement is to determine an approach for detecting the concealing of a cash shortage
    by transporting funds from one location to another or by converting negotiable assets to cash. Answer
    simultaneous verifications is correct because the timing of the performance of auditing procedures
    involves the proper synchronizing of their application and thus comprehends the possible need for
    simultaneous examination of, for example, cash on hand and in banks, securities owned, bank loans,
    and other related items.
    Simultaneous surprise cash count is incorrect because by itself, would not detect a
    shortage of cash. Only cash on hand would be verified by this method and the auditor would not be
    able to determine if negotiable assets had been converted.

    Reference:

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