The bank reconciliation for ABC Inc. at its year-end, December 31, 2022 includes the following:Outstanding checks $761,342.55.Identify all the following procedures that are applicable to the audit of outstanding checks.Check All That ApplyInspect bank credit memosTrace items on the bank reconciliation to the cutoff bank statement.Trace items to cash receipts journalAscertain reason for unusual delay, if any.Trace items to cash disbursements journal.Inspect bank debit memos.

Out of the listed procedures, the following are applicable to the audit of outstanding checks:Trace…

The bank reconciliation for ABC Inc. at its year-end, December 31, 2022 includes the following: Outstanding checks $761,342.55. Identify all the following procedures that are applicable to the audit of outstanding checks.

The bank reconciliation for ABC Inc. at its year-end, December 31, 2022 includes the following: Outstanding checks $761,342.55. Identify all the following procedures that are applicable to the audit of outstanding checks.

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

The bank reconciliation for ABC Inc. at its year-end, December 31, 2022 includes the following:
Outstanding checks $761,342.55.
Identify all the following procedures that are applicable to the audit of outstanding checks.
Check All That Apply
Inspect bank credit memos
Trace items on the bank reconciliation to the cutoff bank statement.
Trace items to cash receipts journal
Ascertain reason for unusual delay, if any.
Trace items to cash disbursements journal.
Inspect bank debit memos.

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Audit procedures for items of Financial Statement

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