Q. The auditee-prepared bank reconciliation below is being inspected by you during anaudit of the financial statements of Inline Skate Company. Indicate one audit procedurethat should be performed for each of the items (a) through (h) (on the bank reconciliationbelow).Balance per bank (a):Deposits in transit (b):Dec-30Dec-31SubtotalOutstanding cheques (c):Inline Skate CompanyBank ReconciliationToronto Trust BankDecember 31, 20X9952211221242134214621472141SubtotalNSF cheque returned 12/29 (d):Bank charges (e)Error: cheque no. 2034 (f)Customer note collected by bank ($2,450 plus $225 interest) (g):Balance per G/L (h):$19,375.281,285.272,942.98 4,228.25$23,603.537,200.00582.09230.001,744.343,541.982,646.794,211.75 -20,156.95$3,446.58175.005.00135.29-2,675.00$1,086.87

Audit Procedures refer to the methods, processes, or techniques that are used by the auditors while…

Q. The auditee-prepared bank reconciliation below is being inspected by you during an audit of the financial statements of Inline Skate Company. Indicate one audit procedure that should be performed for each of the items (a) through (h) (on the bank reconciliation below).

Q. The auditee-prepared bank reconciliation below is being inspected by you during an audit of the financial statements of Inline Skate Company. Indicate one audit procedure that should be performed for each of the items (a) through (h) (on the bank reconciliation below).

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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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

Q. The auditee-prepared bank reconciliation below is being inspected by you during an
audit of the financial statements of Inline Skate Company. Indicate one audit procedure
that should be performed for each of the items (a) through (h) (on the bank reconciliation
below).
Balance per bank (a):
Deposits in transit (b):
Dec-30
Dec-31
Subtotal
Outstanding cheques (c):
Inline Skate Company
Bank Reconciliation
Toronto Trust Bank
December 31, 20X9
952
2112
2124
2134
2146
2147
2141
Subtotal
NSF cheque returned 12/29 (d):
Bank charges (e)
Error: cheque no. 2034 (f)
Customer note collected by bank ($2,450 plus $225 interest) (g):
Balance per G/L (h):
$19,375.28
1,285.27
2,942.98 4,228.25
$23,603.53
7,200.00
582.09
230.00
1,744.34
3,541.98
2,646.79
4,211.75 -20,156.95
$3,446.58
175.00
5.00
135.29
-2,675.00
$1,086.87

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