6.52 Procedures for Auditing a Client’s Bank Reconciliation. Auditors typically will find the items.
6.52 Procedures for Auditing a Client’s Bank Reconciliation.
Auditors typically will find the items lettered (A)â€”(F) in client-prepared bank
GENERAL COMPANYBank Reconciliation: 1stNational BankSeptember 30
Balance per bank
Deposits in transit
988 Aug 31
1281 Sept 26
1285 Sept 27
1289 Sept 29
1292 Sept 30
note collected by the bank:
Check #1282, written on Sept. 26 for $270, was erroneously charged by bank as
$720; bank was notified Oct. 2
Balance per books
Assume these facts: On
October 11, the auditor received a cutoff bank statement dated October 7. The
September 30 deposit in transit; the outstanding checks 1281, 1285, 1289, and
1292; and the correction of the bank error regarding check 1282 appeared on the
cutoff bank statement.a.
For each of the preceding lettered items (A)â€”(F), select one or more of the
following proÂcedures 1-10 that you believe the auditor should perform to
obtain evidence about the item. These procedures may be selected once, more
than once, or not at all. Be prepared to explain the reasons for your choices.1.Trace to cash receipts journal.2.Trace to cash disbursements journal.3.
to the September 30 general ledger.4.Confirm directly with the bank.5.Inspect bank credit memo.6.
bank debit memo.7.Ascertain reason for unusual delay, if any.8.Inspect supporting documents for reconciling items that do not
appear on the cutoff bank statement.9.
items on the bank reconciliation to the cutoff bank statement.10.
items on the cutoff bank statement to the bank reconciliation.
Auditors ordinarily foot client-prepared bank reconciliation. If the auditors
had perÂformed this recalculation on the preceding bank reconciliation, what
might they have found? Be prepared to discuss any findings.(AICPA adapted)
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