When preparing a bank reconciliation, if the adjusted book balance and the adjusted bank balance are equal, then there is no need to have an external auditor test internal controls for the "cash" account. True or False

Q: Outstanding checks: Group of answer choices Have not been received by the bank for processing Are…

A: Outstanding checks are those that the business has written to a supplier but these have not been…

Q: When preparing bank reconciliation, deposits in transit will: A. Increase the balance per…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: Which audit claims will be met by the audit method of cash count and bank verification requests

A: introduction: If the management's financial statements have any inaccuracies or frauds, the only…

Q: bank reconciliation should be prepared periodically because Select one: A. the bank has not…

A: There are two type of balances for cash in the business. One is cash balance as per cash book and…

Q: -Identify the external source of audit evidences to reconcile the imbalance in the cash book and…

A: External source of audit evidences are collected by the auditor outside the client's organization.

Q: The bank balance in the cash book and that of the bank statement may disgrace because of…

A: Bank balance in cash book means balance shown in books of the company as cash balance. Bank…

Q: Each situation below describes an internal control weakness in the cash receipts process.…

A: Given: Each situation below describes an internal control weakness in the cash receipts process. To…

Q: Why is it important to prepare a bank reconciliation?

A: Bank reconciliation statement is prepared where an entry which is found in one book (Cash book or…

Q: Preparing the bank recociliation is consifered to be an important step in interna; control process…

A: Bank reconciliation refers to the process of reconciling the balances of the accounting records of…

Q: The auditor would like to determine any cash restriction. Which of the following audit procedures…

A: Budget audits or a third-party objective review and evaluation of a company's financial accounts are…

Q: The bank reconciliation can be used to control cash in a bank account. A) True B) False

A: Lets understand the basics. Bank reconciliation statement is a statement prepared to match cash…

Q: Which of the following scenarios reduces the risk of an employee fraud? Group of answer choices An…

A: Accountant was in charge and knowledge of vendor balances. Hence, chances for fraud in the form of…

Q: Which among the following types of audit evidence can be considered the most reliable? a. Verbal…

A: Please see the next step for the solution

Q: Items a through frepresent the items that an auditor ordinarily would find on a client-prepared bank…

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

Q: If a check correctly written and paid by the bank for $637 is incorrectly recorded on the company's…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: The auditor would like to determine any cash restriction. Which of the following audit procedures…

A: Audit Procedure: In the context of financial statements, audit procedures are the steps taken by…

Q: When auditing the cash account, the auditor traces the cash receipts, which are recorded on the cash…

A: Auditing refers to the process of physically evaluating and inspecting all the financial information…

Q: Another way to describe account reconciliation is bank reconciliation—the process of bringing the…

A: A bank reconciliation statement is prepared by almost every organization at a particular time. It is…

Q: If a check correnctly written and paid by the bank for 504 is incorrectly recorded on the company's…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: If the balance shown on a company’s bank statement is less than the correct cash balance and neither…

A: Bank reconciliation statement is a statement used to match the balance of money reported on the…

Q: When auditors perform the bank reconciliation test, what would be the appropriate audit procedure…

A: Auditing procedures of Bank Reconciliation Bank reconciliation is one of the important part in the…

Q: Counting cash and verifying bank reconciliation are basic substantive procedures and are not…

A: Counting cash and verifying bank reconciliation are basic substantive procedures andsame ia required…

Q: The following are deficiencies in internal controls over cash. For each deficiency indicate what…

A: “Since you have posted a question with multiple sub parts, we will solve first 3 sub parts for you.…

Q: Explain why auditors usually emphasize the detection of fraud inthe audit of cash receipts. Is this…

A: The auditor focuses on cash as it is the very high liquid asset of the company, hence there is a…

Q: On receiving the bank cutoff statement, the auditor should trace:

A: A bank cut off statement is the statement of bank as on a specified date which is subsequent to the…

Q: A bank reconciliation takes time and must balance. An employee was struggling in balancing the bank…

A: Concept introduction: Internal control is a set of controls that ensure smooth and effective…

Q: Understanding bank account controls Answer the following questions about the controls in bank…

A: 1.Signature card is used to ensure that particular person is an authorized official towards signing…

Q: The bank reconciliation ? Please explain with full explanation.  a. should be prepared by an…

A: Following is the answer to given problem

Q: The bank balance in the cash book and that of the bank statement may disagree because of…

A: The bank reconciliation statement is prepared to adjust the balances of cash book and pass book to…

Q: Bank reconciliation is best prepared by the Accountant rather than the Internal Auditor. *…

A: The question is based on the concept of Accounting Theory. BRS is a statement that is prepared to…

Q: On receiving the bank cutoff statement, the auditor should trace:   a. Deposits in transit on the…

A: Explanation  On receiving a client's bank cutoff statement, an auditor most likely would trace (b)…

Q: Explain why, in verifying bank reconciliations, most auditorsemphasize the possibility of a…

A: Auditing refers to an independent examination of financial information of any organization. The sole…

Q: Which of the following items must be deducted to the balance per ledger in preparing a bank…

A: Service charges: Banks debited the charges for maintain of account with bank and for the transaction…

Q: Which of the following must be deducted from the bank statement balance in preparing a bank…

A: Bank reconciliation is important for better Internal control because it provides the clear picture…

Q: Outstanding checks are checks the company has written and recorded but the bank has not received.…

A: Outstanding checks are the checks that have been issued by the company but they have not yet been…

Q: The preparation of monthly bank account reconciliations is an internal control in place to detect…

A: The given statement is True.... Bank account reconciliation is prepared to detect the difference in…

Q: The company is not preparing bank accounts reconciliations. This is an example of: * O Audit risk O…

A: Bank reconciliation statement (BRS) is a statement which is prepared by the internal management of…

Q: A cash payment under a good control system will have. a. Too much amount Bank book balance b.…

A: The concept of segregation of duties refers to the need for more than one person to execute a task.

Q: A bank reconciliation should be prepared periodically because Oa. the company's records and the…

A: Introduction Bank Reconciliation Statement is a Comparison between cash reported in bank statement…

Q: A common audit procedure to verify the existence assertion of cash account balances is: a.…

A: Existence assertion is the assertion that the assets and the liabilities which is appearing the…

Q: Which of the following tests of details most likely would help an auditor determine whether accounts…

A:

Q: What documentation should an auditor inspect when a client has paid off a bank note? How could an…

A: Definition: Bank statement: This is a periodic or monthly statement issued by the bank reporting the…

Q: Which one of the following would the auditor consider to be an incompatible operation if the cashier…

A: Incompatible Operation in Cash Receipts: The mailroom is using for receiving the checks and after…

Q: amount of cash is accurately recorded on the financial statements. All of the following are…

A: an audit, independent examination of the financial statement of an entity. there are mainly three…

Q: The accounting clerk pays all obligations by pre numbered checks. What are the strengths and…

A: It was must obligatory  in the internal control over by the cash payments which are taken care by…

Q: If the cash balance shown on the entity is accounting records is less than the correct each balance…

A: Answer

Q: Which of the following would the auditor consider to be an incompatible operation if the cashier…

A: An auditor seems to be an individual who checks the authenticity of commercial transactions that…

Q: In a bank reconciliation, outstanding checks are recorded by the __________, but not yet by the…

A: In bookkeeping, a bank reconciliation is the process by which the bank account balance in an…

Q: Why is the monthly reconciliation of bank accounts by an independent person an important internal…

A: Bank reconciliation statement is an important tool for internal control and it is prepared at the…

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.