A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date. To choose: The audit procedure for gathering appropriate evidence for ‘balance as per bank’.

Question

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. Confirm the year-end balance using the standard form to confirm account balance information with financial institutions. MacBook Ain

Answer 1

Question

Chapter 10, Problem 21RQSC

(a)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per bank’.

(b)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per books’.

(c)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘deposit in transit’.

(d)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘customers’ note collected by bank’.

(e)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘outstanding checks’.

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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. Confirm the year-end balance using the standard form to confirm account balance information with financial institutions. MacBook Ain

On receiving the bank cutoff statement, the auditor should trace: a. Deposits in transit on the year-end bank reconciliation to deposits in the cash receipts journal. b. Checks dated prior to year end to the outstanding checks listed on the year-end bank reconciliation. c. Deposits listed on the cutoff statement to deposits in the cash receipts journal. d. Checks dated subsequent to year end to the outstanding checks listed on the year-end bank reconciliation.

A1) Which of the following would the auditor most likely perform when auditing the bank reconciliation for a December 31 year-end audit? a. Confirm the audit client’s book balance shown on the bank reconciliation directly with the bank. b. Verify the audit client’s book balance shown on the bank reconciliation to the Cash balance in the audit client’s trial balance and general ledger. c. Subtract the outstanding check amounts from the audit client’s book balance. d. Verify the deposits in transit amounts to the audit client’s December bank statement.

Answer 2

Question

Chapter 10, Problem 21RQSC

(a)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per bank’.

(b)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per books’.

(c)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘deposit in transit’.

(d)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘customers’ note collected by bank’.

(e)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘outstanding checks’.

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Answer 3

Question

Chapter 10, Problem 21RQSC

(a)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per bank’.

(b)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per books’.

(c)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘deposit in transit’.

(d)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘customers’ note collected by bank’.

(e)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘outstanding checks’.

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Answer 4

Question

Chapter 10, Problem 21RQSC

(a)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per bank’.

(b)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per books’.

(c)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘deposit in transit’.

(d)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘customers’ note collected by bank’.

(e)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘outstanding checks’.

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Answer 5

Chapter 10, Problem 21RQSC

(a)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per bank’.

(b)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per books’.

(c)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘deposit in transit’.

(d)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘customers’ note collected by bank’.

(e)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘outstanding checks’.

Answer 6

Chapter 10, Problem 21RQSC

(a)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per bank’.

Answer 7

Chapter 10, Problem 21RQSC

(a)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per bank’.

Answer 8

(b)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per books’.

Answer 9

(b)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘balance as per books’.

Answer 10

(c)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘deposit in transit’.

Answer 11

(c)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘deposit in transit’.

Answer 12

(d)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘customers’ note collected by bank’.

Answer 13

(d)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘customers’ note collected by bank’.

Answer 14

(e)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘outstanding checks’.

Answer 15

(e)

To determine

Introduction:

A bank reconciliation statement is prepared to tally the balance in a bank account with that of the company’s financial record. It is helpful in detecting errors and determining the actual bank balance on a specific date.

To choose: The audit procedure for gathering appropriate evidence for ‘outstanding checks’.

Answer 16

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Ch. 10 - Which of the following assertions is relevant to...Ch. 10 - Match the following assertions with their...Ch. 10 - Prob. 11RQSC Ch. 10 - Prob. 18RQSC Ch. 10 - Prob. 19RQSC Ch. 10 - Prob. 21RQSC

Solution Summary: The author explains how a bank reconciliation statement is prepared to tally the balance in the bank account with that of the company's financial record.

Chapter 10 Solutions