Which procedure is an auditor most likely to use to detect a check outstanding at year-end that was not recorded as outstanding on the year-end bank reconciliation? Multiple Choice Prepare a bank transfer schedule using the client's cash receipts and cash disbursements journal. Receive a cutoff bank statement directly from the client's bank. Prepare a four column bank reconciliation using the year-end bank statement.

Which procedure is an auditor most likely to use to detect a check outstanding at year-end that was not recorded as outstanding on the year-end bank reconciliation? Multiple Choice Prepare a bank transfer schedule using the client's cash receipts and cash disbursements journal. Receive a cutoff bank statement directly from the client's bank. Prepare a four column bank reconciliation using the year-end bank statement.

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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Please provide an answer along with an explanation, and clarify whether each option is correct or incorrect.
Bug-Off Exterminators CP 11 Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. The following six-column table contains the company's unadjusted trial balance as of December 31, 2015. Cash. Accounts receivable Allowance for doubtful accounts Merchandise inventory Trucks Accum depreciation-Trucks Equipment Accum depreciation-Equipmenc Accounts payable. Estimated warranty liability. Unearned services revenue Interest payable Long-term notes payable D. Buggs. Capital.. D. Buggs. Withdrawals Extermination services revenue Interest revenue Sales (of merchandise) Cost of goods sold Depreciation expense--Trucks Depreciation expense-Equipment Wages expense Interest expense. Renc expense Bad debts expense Miscellaneous expense Repairs expense. Utilities expense Warranty expense Totals BUG-OFF EXTERMINATORS December 31, 2015 Unadjusted Trial Balance $ 17,000 4.000 11.700 32.000 45,000 10.000 46.300 0 0 35,000 0 0 $ 828 12.200…
Which of the following statements about reconciling items is true? A Debit memoranda should be subtracted from the book side of the bank reconciliation. B An NSF check returned to the bank should be added back to book cash. C If a company discovers errors in its general ledger Cash account, it should call the bank to have the errors corrected. D Adjustments to the bank side of the bank reconciliation should be booked as adjustments to the general ledger Cash account. Please advise, the answer D is correct?
Place a check mark in the column that indicates the location of each item that would be found on a bank reconciliation. Assume that the checks written by the company are written correctly. Item | Add to bank statement balance | Subtract from bank statement balance | Add to ledger balance of cash | Subtract from ledger balance of cash.. 1. Outstanding checks 2. Deposit in transit 3. A check written for $52 recorded incorrectly as $25 4. Check printing charge 5. An NFS check received from a customer. 6. A bank service charge 7. A deposit for $197 listed incorrectly on the bank statement as $179
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.
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.
When completing the bank reconciliation, Bank Service Charges would be: Subtracted from the Cash General Ledger Balance Subtracted from the Bank Statement Balance Added to the Cash General Ledger Balance Added to the Bank Statement Balance
please answer with reason
Prepare any journal entries that should be made as a result of the bank reconciliation.
On receiving the bank cutoff statement, the auditor should trace:
The April 30 bank statement of Counselling Service Association(CSA) has just arrived from SoctiaBank. Using the pictures provided to prepare the Bank Reconciliations for CSA and Journalise the April 30 transections needed to update update CSA's Cash Account
when auditing a client's year end cash balance, an auditor uses standard bank confirmations and performs tests on the clients year end bank reconciliations. These substantive procedures test which of the following assertions? a. understandability of presentation and classification b. cutoff c. completeness and valuation and allowance d. rights and obligations, and occurence