he following are misstatements that might be found in the client’s year-end cash balance (assume that the balance sheet date is June 30): A check that was dated June 26 and disbursed in June was not recorded in the cash disbursements journal, but it was included as an outstanding check on June 30. A check was omitted from the outstanding checklist on the bank reconciliation. It cleared the bank on September 6. The outstanding checks on the June 30 bank reconciliation were underfoot by $2,000.A loan from the bank on June 26 was credited directly to the client’s bank account. The loan was not entered as of June 30. A check was omitted from the outstanding checklist on the June 30 bank reconciliation. It cleared the bank on July 7.Cash receipts collected on accounts receivable from July 1 to July 5 were included as of June 29 and 30 cash receipts. A bank transfer recorded in the accounting records on July 1 was included as a deposit in transit on June 30.RequiredAssuming that each of these misstatements was intentional (fraud), state the most likely motivation of the person responsible. What control can be instituted for each fraud to reduce the likelihood of occurrence? List an audit procedure that can be used to discover each fraud.
23-17 (Objectives 23-3, 23-4) The following are misstatements that might be found in the client’s year-end cash balance (assume that the
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