Chapter 16, Problem 16.5RQ

To determine

Concept Introduction:

Audit procedure is part of internal control performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. To verify the bank reconciliation statement with the general ledger account the auditors perform the bank audit.

To describe:The reasons for obtaining a cutoff bank statement when audit the bank account and information that is examined on the canceled check return with the cutoff bank statement