Answer the following statements true (T) or false (F)

Question

1. A cutoff bank statement is used to verify the propriety of the reconciling items shown on the bank reconciliation
2. Kiting is an audit procedure used to test the accuracy of the cash receipts.
3. It is generally more efficient to follow a substantive strategy for auditing investments
4. If the entity maintains custody of its investments, the auditor normally examines the actual securities
5. Level 1 inputs are more risky and difficult to audit than Level 3 inputs to a valuation model.

Answer 1

1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE