9. A dual purpose test simultaneously:

Addresses two different accounts. Functions as a substantive test and as a test of controls. Functions as an analytical procedure and a substantive test. Substantiates an ending balance and the transactions making up the balance.

10. Which of the following may be used to reduce the risk of nonsampling errors?

Increasing the size of audit samples. Stratifying audit samples. Adequately planning audit samples. Using statistical sampling techniques.

11. Which of the following manipulations of cash transactions would overstate the cash balance on the financial statements? Multiple Choice Understatement of outstanding checks. Overstatement of outstanding checks. Understatement of deposits in transit. Overstatement of bank services charges.

13. An auditor may obtain information on the December 31 month-end balance per bank in which of the following?

December 31 Bank Statement Schedule of Bank (Cash) Transfers A. Yes Yes B. Yes No C. No Yes D. No No