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…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

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

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

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 22RQSC

See similar textbooks

Related questions

Concept explainers

Question

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.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions