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Attached is an audit working paper prepared by a new staff auditor based on his testing of a client's bank reconciliation. REQUIRED: Indicate the deficiencies in the working paper prepared by the auditor for the client's bank reconciliation. Be specific with your answers.

Attached is an audit working paper prepared by a new staff auditor based on his testing of a client's bank reconciliation. REQUIRED: Indicate the deficiencies in the working paper prepared by the auditor for the client's bank reconciliation. Be specific with your answers.

FINANCIAL ACCOUNTING
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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STACK ENTERPRISES REFERENCE A5 BANK RECONCILIATION PREPARER SA DECEMBER 31, 20X7 DATE Balance Per Bank, 12/31/X7 $ 1,845,200 @ Add: Deposits in Transit, 12/31/X7 Less: Outstanding Checks 158,950 No. 6125 dated 12/24 2$ 145,850 # No. 6126 dated 12/26 15,750 # No. 6127 dated 12/27 245,800 # No. 6129 dated 12/29 221,650 # ( 749,175) $ 1,254,975 No. 6130 dated 12/31 120,125 # Reconciled Bank Balance $ 1,310,625 % Balance Per Books (General Ledger), 12/31/X7 Less: Check from West, Inc. deposited on 12/20/X7 and returned 55,600 by bank as NSF on 12/24/X7 ( 55,650) @ $ 1,254,975 50 Bank Service Charges per bank statement Reconciled Book Balance @ Agreed to 12/31/X7 bank statement obtained from client/ SA Agreed to cash receipts journal / SA Agreed to cash payments journal / SA Agreed to client bank reconciliation/ SA 23
Transcribed Image Text:STACK ENTERPRISES REFERENCE A5 BANK RECONCILIATION PREPARER SA DECEMBER 31, 20X7 DATE Balance Per Bank, 12/31/X7 $ 1,845,200 @ Add: Deposits in Transit, 12/31/X7 Less: Outstanding Checks 158,950 No. 6125 dated 12/24 2$ 145,850 # No. 6126 dated 12/26 15,750 # No. 6127 dated 12/27 245,800 # No. 6129 dated 12/29 221,650 # ( 749,175) $ 1,254,975 No. 6130 dated 12/31 120,125 # Reconciled Bank Balance $ 1,310,625 % Balance Per Books (General Ledger), 12/31/X7 Less: Check from West, Inc. deposited on 12/20/X7 and returned 55,600 by bank as NSF on 12/24/X7 ( 55,650) @ $ 1,254,975 50 Bank Service Charges per bank statement Reconciled Book Balance @ Agreed to 12/31/X7 bank statement obtained from client/ SA Agreed to cash receipts journal / SA Agreed to cash payments journal / SA Agreed to client bank reconciliation/ SA 23
Attached is an audit working paper prepared by a new staff auditor based on his testing of a client's bank reconciliation. REQUIRED: Indicate the deficiencies in the working paper prepared by the auditor for the client's bank reconciliation. Be specific with your answers.
Transcribed Image Text:Attached is an audit working paper prepared by a new staff auditor based on his testing of a client's bank reconciliation. REQUIRED: Indicate the deficiencies in the working paper prepared by the auditor for the client's bank reconciliation. Be specific with your answers.
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