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18. An auditor ordinarily sends a standard confirmation request to all banks with which the client has done business during the year under audit, regardless of the year end balance. A purpose of this procedure is to: (a) Detect kiting activities that may otherwise not be discovered. (b) Request that a cutoff bank statement and related checks be sent to the auditor. Provide the data necessary to prepare a proof of cash. Seek information about other deposit and loan amounts that come to the attention of the institution in the process of completing the confirmation. (c) (d) 19. The most important procedure to employ in ascertaining the existence of improper payments usually is: (a) Reviewing payment voucher supporting documents for receiving reports, invoices, purchase orders, and approval to pay initials. (b) Comparing total payments by type this year with those of prior years. (o) Inqiring of the treasurer's office personnel as to the existence of duplicate payments. Observing of payment procedures in the treasurer's office for conformance to policies and procedures manual specifications. (d) 20. Purchase cutoff procedures should be designed to test whether all inventory: (a) (b) Purchased and received before year end was paid for. Owned by the company is in the possession of the company at year end. Ordered before year end was received. Purchased and received before year end was recorded. (c) (d) 21. To determine whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. The population of documents for this test consists of all: (a) Purchase requisitions. (b) Vendor's invoices. (c) Receiving reports. (d) Payment vouchers. Counting inventory on the warehouse floor and tracing the count to the inventory listing provides evidence to support which management assertion? (a) Existence or occurrence (b) Completeness. (c) Rights and obligations. (d) Valuation or allocation. 22

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