STACK ENTERPRISESREFERENCEA5BANK RECONCILIATIONPREPARERSADECEMBER 31, 20X7DATEBalance Per Bank, 12/31/X7$ 1,845,200 @Add: Deposits in Transit, 12/31/X7Less: Outstanding Checks158,950No. 6125 dated 12/242$145,850 #No. 6126 dated 12/2615,750 #No. 6127 dated 12/27245,800 #No. 6129 dated 12/29221,650 #( 749,175)$ 1,254,975No. 6130 dated 12/31120,125 #Reconciled Bank Balance$ 1,310,625 %Balance Per Books (General Ledger), 12/31/X7Less: Check from West, Inc. deposited on 12/20/X7 and returned55,600by bank as NSF on 12/24/X7( 55,650) @$ 1,254,97550Bank Service Charges per bank statementReconciled Book Balance@Agreed to 12/31/X7 bank statement obtained from client/ SAAgreed to cash receipts journal / SAAgreed to cash payments journal / SAAgreed to client bank reconciliation/ SA23 Attached is an audit working paper prepared by a new staff auditor based on his testing of a client'sbank reconciliation.REQUIRED: Indicate the deficiencies in the working paper prepared by the auditor for the client'sbank reconciliation. Be specific with your answers.

Auditor while performing his duties for conducting an audit prepares some documents, file work and…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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.

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