STACK ENTERPRISESREFERENCEA5BANK RECONCILIATIONPREPARERSADECEMBER 31, 20X7DATEBalance Per Bank, 12/31/X7$ 1,845,200 @Add: Deposits in Transit, 12/31/X7Less: Outstanding Checks158,950No. 6125 dated 12/242$145,850 #No. 6126 dated 12/2615,750 #No. 6127 dated 12/27245,800 #No. 6129 dated 12/29221,650 #( 749,175)$ 1,254,975No. 6130 dated 12/31120,125 #Reconciled Bank Balance$ 1,310,625 %Balance Per Books (General Ledger), 12/31/X7Less: Check from West, Inc. deposited on 12/20/X7 and returned55,600by bank as NSF on 12/24/X7( 55,650) @$ 1,254,97550Bank Service Charges per bank statementReconciled Book Balance@Agreed to 12/31/X7 bank statement obtained from client/ SAAgreed to cash receipts journal / SAAgreed to cash payments journal / SAAgreed to client bank reconciliation/ SA23 Attached is an audit working paper prepared by a new staff auditor based on his testing of a client'sbank reconciliation.REQUIRED: Indicate the deficiencies in the working paper prepared by the auditor for the client'sbank reconciliation. Be specific with your answers.

Auditor while performing his duties for conducting an audit prepares some documents, file work and…

Attached is an audit working paper prepared by a new staff auditor based on his testing of a client's bank reconciliation. REQUIRED: Indicate the deficiencies in the working paper prepared by the auditor for the client's bank reconciliation. Be specific with your answers.

Attached is an audit working paper prepared by a new staff auditor based on his testing of a client's bank reconciliation. REQUIRED: Indicate the deficiencies in the working paper prepared by the auditor for the client's bank reconciliation. Be specific with your answers.

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

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 20RQSC

See similar textbooks

Related questions

Q: Determine if sole proprietorship, partnership, or corporation. Select all that is applicable between...

A: Business ownership seems mostly seems in three top forms i.e sole proprietorship, partnership, or co...

Q: On February 1, 2022, Mr. X promised to pay Ms. Y the amount of ₱10,000.00 at an annual rate of 6%. M...

A: Note payable is a form of promissory note which is a promise given by one person to another person. ...

Q: The following information pertain= Credit sales Accounts payable Accounts receivable Allowance for U...

A: The amount that will not be collected is referred to as bad debt. The factors that contribute to b...

Q: 1. The interest cost component of the net defined benefit cost is determined using a. the settlement...

A: "Since you have asked multiple question we would be solving first question,If you want any specific ...

Q: Make a General Ledger for the following selected transactions completed by the SPC Laundry Shop duri...

A: Introduction:- A journal entry is the act of recording or keeping track of any financial or non-fina...

Q: Johnson Co. began operations on January 1, 2021. During the next 2 years, they completed a number o...

A: The bad debt expense = 2% of outstanding accounts receivables Bad debt expense for year 1 = 2% ( Ac...

Q: JT Engineering's current asset information is shown here. If JT's current liabilities are $300,000, ...

A: Lets understand the basis. Current ratio compares the current asset with current liabilities. Curren...

Q: Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falco...

A: Solution Ordinary income is any type of income earned by an organisation or an individual that is ta...

Q: X Answer is complete but not entirely correct. CHEETAH СOРY Depreciation Schedule-Double-Declining-B...

A: solution given Cost of machine $110000 Residual value 27500 Useful life 4 years ...

Q: ou are a newly hired fraud examiner. You have been asked to write a preliminary report on the scenar...

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...

Q: Donald Petersen joined his father, William Petersen, in a chicken hatchery business William had prev...

A: Mr. DP joined his father, Mr. WP, in his chicken hatchery business. WP ran the business as a sole pr...

Q: Determine the AW values for one and two life cycles at 15 % per year.

A: AW is the acronym and stands for the annual worth which means it is the cash flow which is the equal...

Q: Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retireme...

A: The maximum contribution limit to Traditional IRA is $ 6000 per person or $ 12000 if MFJ. The phaseo...

Q: pany uses job order costing system. The company uses machine hours to apply overhead cost to jobs. A...

A: Journal entries refer to the process of collecting and documenting all the transactions f a company ...

Q: The following transactions apply to Pecan Co. for Year 1, its first year of operations: 1. Received ...

A: The accounting equation states that assets equal to sum of liabilities and equity. The balance sheet...

Q: aker's Financial Planners purchased nine new computers for $910 each. It received a 20% discount bec...

A: solution concept credit term 5/10 n/30 means that if the payment is made within 10 days from the inv...

Q: Cost of goods manufactured $198,240 Selling expenses 66,220 Administrative expenses 35,010 Sales 421...

A: Formula: Cost of finished goods available for sale = Beginning Finished goods + Cost of goods manufa...

Q: PREPARE AN INCOME STATEMENT MARIE SWIFT Company reported the given information for the month of Octo...

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for y...

Q: The business manufactures custom patios made of concrete, brick, fiberglass, and lumber- depending u...

A: answers Direct material Work in process Finished goods Beginning inventory 4200 5540...

Q: Should the amount of surplus or deficit in 2009 affect the decision to change the annual dues for 20...

A: Surplus or deficit in the income statement is the excess or shortfall of operating income of the org...

Q: Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpA...

A: In this question Alloacted wages will be based on the salary to owner jack and jill in the ratio of ...

Q: What form of business pays personal income tax?

A: Income tax, as the name suggests, is calculated on the income of assessee and payable according to t...

Q: What critique can say about this?

A: Liquidity ratios analysis is the usage of numerous ratios to determine the capability of a company t...

Q: 15–8. (Computing interest tax savings) Presently, H. Swank, Inc., does not use any finan- cial lever...

A: Debts- Debt is something, generally money, on loan by one party from another. Debt is used by variou...

Q: Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2...

A: Answer - Working Note - Calculation of Interest Revenue - Particulars Amount Opening Balance...

Q: Massy Company issued $4,000,000 of 10-year, 11% bonds on January 4, 2021. The bonds pay interest sem...

A: Introduction:- A journal entry is the act of recording or keeping track of any financial or non-fina...

Q: Who Uses Financial Reporting and Analysis

A: Financial reporting is a day-to-day practice which helps the organization to keep the business activ...

Q: On January 1, Year 1, Amira’s Stables Corp., which reports its financial results in accordance with ...

A: answers CLASSIFICATION OF LEASE WITH THE FIVE TESTS : 1. Transfer Ownership Test - to transfer ow...

Q: The Harriott manufacturing company uses job order costing system. The company uses machine hours to ...

A: The overhead variance is the difference between actual overhead and applied overhead cost.

Q: Problem 7-19 Education Tax Credits (LO 7.5) Janie graduates from high school in 2021 and enrolls in ...

A: On first $ 2,000 2,000 =2000*100% On Next $2,000 500 =2000*25% Total credit...

Q: ACCOUNTS FURNITURES ACCOUNTS UTILIITES OWNER'S TRANSACTION CASH RECEIVABLES & FIXTURES PAYABLE PAYAB...

A: Transaction Cash Account receivable Furniture & Fixtures Accounts payable Utilities pa...

Q: Formation and Operations of a Partnership On June 30, San Mateo and Caballes formed a partnership. T...

A: Partnership is one of the agreement between two or more than two persons, in which they invest their...

Q: our Corporation has received a request for a special order of 6,000 units of its product for $19 eac...

A: Your Corporation has received a request for a special order of 6,000 units of its product for $19 ea...

Q: Massy Company issued $4,000,000 of 10-year, 11% bonds on January 4, 2021. The bonds pay interest sem...

A: Introduction:- A journal entry is the act of recording or keeping track of any financial or non-fina...

Q: Firms often treat investment centers as if they were a... Revenue center Stand-alone business Suppor...

A: Decentralization: Decentralization alludes to a particular type of authoritative construction where ...

Q: Complete the following table (assume the overtime for each employee is a time-and-a-half rate after ...

A: Solution: Total time worked in the week = 12 + 8 + 10 + 8 + 6 + 3 = 47 hours Regular time = 40 hours...

Q: roblem 19-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 Skip to ques...

A: Job costing is one of the type of costing, under which all costs are being assigned and accumulated ...

Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average o...

A: ITEM 1 Reorder Point = 4,200 units ITEM 2 Lead Time Demand = 2,500 units ITEM 3 Safety Stock = 1,700...

Q: Explain why a duty to prevent insolvent trading is imposed on directors by statute. Provide an examp...

A: Financial Accounting Financial accounting is the process of recording financial events, summarizing ...

Q: (in millions) 2020 2021 2022 Beginning inventory $2,000 $2,400 $2,600 Ending inventory 2 400 2 600 2...

A: Inventory refers to all of the items, goods, merch, and materials held by a company for the purpose ...

Q: beginning of the process. How much is the materials cost per unit if ending work in process was 30% ...

A: Process costing refers to an accounting system which is used by manufacturing companies who are prod...

Q: Discuss when a company in the extractive industries needs to start accounting for its restoration co...

A: When the outflow of economic advantages is required, a corporation in the extractive industry begins...

Q: Karane Enterprises, a calendar-year manufacturer based in College Station, Texa business in 2019. In...

A: Taxable income refers to the income gained by an entity on which the authorised government levied a ...

Q: Choose ONE of the MAS studied in this unit from the list below, and answer the questions that follow...

A: given • Budgeting System

Q: Stacy's Dress Shop received a $1,240 invoice dated July 27 with 5/10, 4/15, n/60 terms. On August 10...

A: Note: 4/15, n/60: Here, 4 represents the discount rate if payment is made within 15 days. And if pay...

Q: X company just took its physical inventory. The count of inventory items on hand at the company's bu...

A: Under consignment, one party assigns its goods for sale to another party. Goods held on consignment ...

Q: What is a base rate entity? And what rates of tax are payable by these entities?

A: ANSWER A base rate entity for an income year is a company if: the company's aggregated turnover fo...

Q: Valencia Corporation has the following liabilities at December 31, 2015: 8.9% note payable issued No...

A: As short term obligation is a current liability, A liability is current when It is expected to be s...

Q: Advise Sam’s employer as to the FBT consequences (using statutory formula method) arising out of the...

A: FBT stands for the fringe benefit tax. It is the benefit which an employee receives from his or her ...

Q: Compute the ending inventory using the dollar value LIF0 method for 2019, 2020, and 2021. Do not rou...

A: Inventory valuation refers to the methods used by the company to determine the value of its inventor...

Question

STACK ENTERPRISES
REFERENCE
A5
BANK RECONCILIATION
PREPARER
SA
DECEMBER 31, 20X7
DATE
Balance Per Bank, 12/31/X7
$ 1,845,200 @
Add: Deposits in Transit, 12/31/X7
Less: Outstanding Checks
158,950
No. 6125 dated 12/24
2$
145,850 #
No. 6126 dated 12/26
15,750 #
No. 6127 dated 12/27
245,800 #
No. 6129 dated 12/29
221,650 #
( 749,175)
$ 1,254,975
No. 6130 dated 12/31
120,125 #
Reconciled Bank Balance
$ 1,310,625 %
Balance Per Books (General Ledger), 12/31/X7
Less: Check from West, Inc. deposited on 12/20/X7 and returned
55,600
by bank as NSF on 12/24/X7
( 55,650) @
$ 1,254,975
50
Bank Service Charges per bank statement
Reconciled Book Balance
@
Agreed to 12/31/X7 bank statement obtained from client/ SA
Agreed to cash receipts journal / SA
Agreed to cash payments journal / SA
Agreed to client bank reconciliation/ SA
23

Attached is an audit working paper prepared by a new staff auditor based on his testing of a client's
bank reconciliation.
REQUIRED: Indicate the deficiencies in the working paper prepared by the auditor for the client's
bank reconciliation. Be specific with your answers.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Audit working papers

VIEW

Step 2: Deficiency in the working paper

VIEW

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

Which of the following is ordinarily performed last in the audit examination?a. Securing a signed engagement letter from the client.b. Performing tests of controls.c. Performing a review for subsequent events.d. Obtaining signed written representations.
If recommendations are made to the audit report noted problems and weaknesses, written responses detailing the following are requested from the audit client: a. A corrective action plan to resolve the problem and its root cause. b. The person responsible for implementing the corrective action. c. An expected implementation date. d. All of the options
Depending on the severity of the audit issue, follow-up activities could include all of the following EXCEPT: Re-auditing the processes that originally led to the audit issue Reviewing updated procedures or documentation Interviewing staff Discussion with the stakeholders On which one of the following ways can the services of internal auditor be availed?
The client and the auditor usually agree that some schedules, analyses, reconciliations, and computations are to be prepared by the client's staff for submission to the auditor. TRUE OR FALSE? WHY?
You are required to read the following statement carefully, and then, discuss the factors behind the statement content, stating examples of how this content can be implemented: "Auditors develop overall audit plans to ensure that they obtain sufficient appropriate audit evidence. The timing and extent of audit procedures auditors use is a matter of professional judgement, which depends upon a number of factors". Plz don’t make it long answer
You have been asked by the audit manager to undertake preliminary analytical procedures.a) Identify the sources of information from which an auditor develops expectations.b) Describe the factors that influence an auditor’s consideration of the reliability of data for purposes of achieving audit objectives.
Assume that you are a senior on an audit engagement and need to explain to your intern/trainee what each of the risk assessment involves. In your own words and using some terminology that is understandable to an intern who has not yet taken an auditing course, describe the risk assessment procedures and the reason to perform these procedures. (Explore any two risk or procedure or assessment).
The auditor shall plan the audit so that in can be performed effectively. The auditor shall study and evaluate the internal control system of the client to express an opinion about the operating effectiveness of such internal control system Group of answer choices False, True False, False True, True True, False
To obtain an understanding of a continuing client in planning an audit, an auditor most liky would; A. Perform test of details of transactions and balances B. Read internal audit reports. C. Read Specialized industry journals. D. Reevaluate the risks of material misstatement
Is it allowed to send copies of the auditor's earlier paperwork to the client? If yes, are there any special criteria that auditors should review prior to delivering the client's documentation? At least three things should be mentioned.
An audit engagement letter should normally include which of the following matters of agreement between the auditor and the client?a. Schedules and analyses to be prepared by the client’s employees. b. Methods of statistical sampling the auditor will use. c. Specification of litigation in progress against the client. d. Client representations about availability of all minutes of meetings of the board of directors.
What are the objectives of an audit risk assessment? Explain why a risk assessment performed during audit planning sets the tone for the entire audit engagement. Also comment on how the concept of ‘risk assessment’ might be useful for any accountant at the outset of any assignment, including non-audit work.