4.1. Discuss the common frauds related to cash accounts. What should auditor do if there's internalcontrol weeknesses over cash accounts?4.2. Paul works for CPA firm, currently involed in an audit engagement. After an interview with clientpersonnel, Paul noted that bank reconciliation procedure was not existed as a internal control at theclient company. As consequences, the ending cash balance was different from Bank statement.Discuss the risks that the client company faces AND explain the possible reason for the differencesbetween cash book and bank statement.

Answered: 4.1. Discuss the common frauds related…

4.1. Discuss the common frauds related to cash accounts. What should auditor do if there's internal control weeknesses over cash accounts?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

4.1. Discuss the common frauds related to cash accounts. What should auditor do if there's internal
control weeknesses over cash accounts?
4.2. Paul works for CPA firm, currently involed in an audit engagement. After an interview with client
personnel, Paul noted that bank reconciliation procedure was not existed as a internal control at the
client company. As consequences, the ending cash balance was different from Bank statement.
Discuss the risks that the client company faces AND explain the possible reason for the differences
between cash book and bank statement.

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