When auditors perform the bank reconciliation test, what would be the appropriate audit procedure for the cash receipts reported on the bank statement but not on the company cash account? A.Auditors investigate whether those cash payments are recorded in the cash payment journal. B.Auditors investigate whether those cash receipts are recorded in the cash receipt journal. C.Auditors trace those cash receipt transactions to bank statements issued in subsequent periods to see if they appear in bank statements after the balance date. D.Unpresented cheques need to be traced to subsequent bank statements. E.All of the options are correct.

Auditing procedures of Bank Reconciliation Bank reconciliation is one of the important part in the…

Answered: When auditors perform the bank…

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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When auditors perform the bank reconciliation test, what would be the appropriate audit procedure for the cash receipts reported on the bank statement but not on the company cash account?

	A.	Auditors investigate whether those cash payments are recorded in the cash payment journal.
	B.	Auditors investigate whether those cash receipts are recorded in the cash receipt journal.
	C.	Auditors trace those cash receipt transactions to bank statements issued in subsequent periods to see if they appear in bank statements after the balance date.
	D.	Unpresented cheques need to be traced to subsequent bank statements.
	E.	All of the options are correct.

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