1 In regard to cash audit and internal controls which of the following is false?
When internal control over the recording of cash is weak the auditor may prepare a proof of cash as a substantive test.
Sending a standard confirmation to financial institutions to verify amounts the client has on deposit is a form of substantive testing.
The consideration of materiality does not apply to the audit of cash.
The bank cutoff statement should be obtained for a period of time after the balance sheet date
2Which of the following is not considered a control over cash disbursements?
All disbursements are made by checks.
All checks are prenumbered and the sequence is accounted for.
After signing, signed checks are returned to the accounting department that prepared them for signature.
Blank checks are kept in a locked safe.