Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank reconciliation. The accompanyingList of Auditing Procedures represents substantive auditing procedures. For each item, select one or more procedures, as indicated,that the auditor most likely would perform to gather evidence in support of that item. The procedures on the list may be selected once,more than once, or not at all.Assume• The client prepared the bank reconciliation on 10/2/X5.• The bank reconciliation is mathematically accurate.• The auditor received a cutoff bank statement dated 10/7/X5 directly from the bank on 10/11/X5.• The 9/30/X5 deposit in transit-outstanding checks # 1281, #1285, # 1289, and #1292-and the correction of the error regardingcheck # 1282 appeared on the cutoff bank statement.• The auditor assessed control risk concerning the financial statement assertions related to cash at the maximum.A. Trace to cash receipts journal.B.C.D.E.F.G.H.Trace to cash disbursements journal.Compare to 9/30/X5 general ledger.Confirm directly with bank.Inspect bank credit memo.Inspect bank debit memo.Ascertain reason for unusual delay.Inspect supporting documents for reconciling item not appearing on cutoff statement.I. Trace items on the bank reconciliation to cutoff statement.J. Trace items on the cutoff statement to bank reconciliation.a. Select 2 proceduresb. Select 5 proceduresc. Select 5 proceduresList of Auditing Proceduresd. Select 1 proceduree. Select 2 proceduresf. Select 1 procedureGENERAL COMPANYBank Reconciliation1st National Bank of US Bank AccountSeptember 30, 20X5Balance per bankDeposits in transit9/29/X59/30/X5Outstanding checks# 988#1281#1285# 1289#1292Customer note collected by bankError: Check # 1282; written on 9/26/X5for $350 was erroneously charged by bankas $530; bank was notified on 10/2/X5Balance per books8/31/X59/26/X59/27/X59/29/X59/30/X5$5505755001,0004754251,125$ 47,1501,12548,275(3,525)44,750(625)180$ 44,305

Bank Reconciliation Statement is a statement document that reconciles the difference in the cash…

Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank reconciliation. The accompanying List of Auditing Procedures represents substantive auditing procedures. For each item, select one or more procedures, as indicated, that the auditor most likely would perform to gather evidence in support of that item. The procedures on the list may be selected once, more than once, or not at all. Assume • The client prepared the bank reconciliation on 10/2/X5. . The bank reconciliation is mathematically accurate. • The auditor received a cutoff bank statement dated 10/7/X5 directly from the bank on 10/11/X5. • The 9/30/X5 deposit in transit-outstanding checks # 1281, #1285, #1289, and #1292-and the correction of the error regarding check # 1282 appeared on the cutoff bank statement. • The auditor assessed control risk concerning the financial statement assertions related to cash at the maximum. A. Trace to cash receipts journal. B. C. D. E. Trace to cash disbursements journal. Compare to 9/30/X5 general ledger. Confirm directly with bank. Inspect bank credit memo. F. Inspect bank debit memo. G. Ascertain reason for unusual delay. H. Inspect supporting documents for reconciling item not appearing on cutoff statement. Trace items on the bank reconciliation to cutoff statement. I. J. Trace items on the cutoff statement to bank reconciliation. a. Select 2 procedures b. Select 5 procedures List of Auditing Procedures c. Select 5 procedures d. Select 1 procedure e. Select 2 procedures f. Select 1 procedure GENERAL COMPANY Bank Reconciliation 1st National Bank of US Bank Account September 30, 20X5 Balance per bank Deposits in transit 9/29/X5 9/30/X5 Outstanding checks # 988 #1281 #1285 #1289 #1292 Customer note collected by bank Error: Check #1282; written on 9/26/X5 for $350 was erroneously charged by bank as $530; bank was notified on 10/2/X5 Balance per books 8/31/X5 9/26/X5 9/27/X5 9/29/X5 9/30/X5 $ 550 575 500 1,000 475 425 1,125 $ 47,150 1,125 48.275 leal (3,525) 44,750 (625) 180 $ 44,305

Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank reconciliation. The accompanying List of Auditing Procedures represents substantive auditing procedures. For each item, select one or more procedures, as indicated, that the auditor most likely would perform to gather evidence in support of that item. The procedures on the list may be selected once, more than once, or not at all. Assume • The client prepared the bank reconciliation on 10/2/X5. . The bank reconciliation is mathematically accurate. • The auditor received a cutoff bank statement dated 10/7/X5 directly from the bank on 10/11/X5. • The 9/30/X5 deposit in transit-outstanding checks # 1281, #1285, #1289, and #1292-and the correction of the error regarding check # 1282 appeared on the cutoff bank statement. • The auditor assessed control risk concerning the financial statement assertions related to cash at the maximum. A. Trace to cash receipts journal. B. C. D. E. Trace to cash disbursements journal. Compare to 9/30/X5 general ledger. Confirm directly with bank. Inspect bank credit memo. F. Inspect bank debit memo. G. Ascertain reason for unusual delay. H. Inspect supporting documents for reconciling item not appearing on cutoff statement. Trace items on the bank reconciliation to cutoff statement. I. J. Trace items on the cutoff statement to bank reconciliation. a. Select 2 procedures b. Select 5 procedures List of Auditing Procedures c. Select 5 procedures d. Select 1 procedure e. Select 2 procedures f. Select 1 procedure GENERAL COMPANY Bank Reconciliation 1st National Bank of US Bank Account September 30, 20X5 Balance per bank Deposits in transit 9/29/X5 9/30/X5 Outstanding checks # 988 #1281 #1285 #1289 #1292 Customer note collected by bank Error: Check #1282; written on 9/26/X5 for $350 was erroneously charged by bank as $530; bank was notified on 10/2/X5 Balance per books 8/31/X5 9/26/X5 9/27/X5 9/29/X5 9/30/X5 $ 550 575 500 1,000 475 425 1,125 $ 47,150 1,125 48.275 leal (3,525) 44,750 (625) 180 $ 44,305

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash And Marketable Securities

Section: Chapter Questions

Problem 33MCQ

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Question

Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank reconciliation. The accompanying
List of Auditing Procedures represents substantive auditing procedures. For each item, select one or more procedures, as indicated,
that the auditor most likely would perform to gather evidence in support of that item. The procedures on the list may be selected once,
more than once, or not at all.
Assume
• The client prepared the bank reconciliation on 10/2/X5.
• The bank reconciliation is mathematically accurate.
• The auditor received a cutoff bank statement dated 10/7/X5 directly from the bank on 10/11/X5.
• The 9/30/X5 deposit in transit-outstanding checks # 1281, #1285, # 1289, and #1292-and the correction of the error regarding
check # 1282 appeared on the cutoff bank statement.
• The auditor assessed control risk concerning the financial statement assertions related to cash at the maximum.
A. Trace to cash receipts journal.
B.
C.
D.
E.
F.
G.
H.
Trace to cash disbursements journal.
Compare to 9/30/X5 general ledger.
Confirm directly with bank.
Inspect bank credit memo.
Inspect bank debit memo.
Ascertain reason for unusual delay.
Inspect supporting documents for reconciling item not appearing on cutoff statement.
I. Trace items on the bank reconciliation to cutoff statement.
J. Trace items on the cutoff statement to bank reconciliation.
a. Select 2 procedures
b. Select 5 procedures
c. Select 5 procedures
List of Auditing Procedures
d. Select 1 procedure
e. Select 2 procedures
f. Select 1 procedure
GENERAL COMPANY
Bank Reconciliation
1st National Bank of US Bank Account
September 30, 20X5
Balance per bank
Deposits in transit
9/29/X5
9/30/X5
Outstanding checks
# 988
#1281
#1285
# 1289
#1292
Customer note collected by bank
Error: Check # 1282; written on 9/26/X5
for $350 was erroneously charged by bank
as $530; bank was notified on 10/2/X5
Balance per books
8/31/X5
9/26/X5
9/27/X5
9/29/X5
9/30/X5
$
550
575
500
1,000
475
425
1,125
$ 47,150
1,125
48,275
(3,525)
44,750
(625)
180
$ 44,305

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