Which of the following would the auditor consider to be an incompatible operation if the cashier receives remittances?a. The cashier prepares the daily deposit.b. The cashier makes the daily deposit at a local bank.c. The cashier posts the receipts to the accounts receivable subsidiary ledger cards.d. The cashier endorses the checks.

Q: Which of the following adjusts the bank's balance of cash in a bank reconciliation?  (More than one…

A: >Bank reconciliation statement, is a statement prepared on a particular date, to reconcile the…

Q: Which of the following communications is most likely to be written before the balance-sheetdate?a. A…

A: D.Correct.- An engagement letter would be written before accepting an engagement and therefore…

Q: An NSF check returned by the bank should be entered in the depositor's accounting  records by a…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…

Q: Auditors typically will find the items lettered A–F in a client-prepared bank reconciliation. Check…

A: Given procedures are: 1. Trace to cash receipts journal.2. Trace to cash disbursements journal. 3.…

Q: Which of the following is not an objective of the cash audit? determine that a. A long-term…

A: Objectives of Cash Audit One of the objectives for a cash audit is to verify that the recorded cash…

Q: Which of the following statements is true? A certified check should be included in the outstanding…

A: Certified check means the check issued by bank saying that there is sufficient funds available in…

Q: How will a company’s bank reconciliation reflect an electronicdeposit of cash received by the bank…

A: Bank reconciliation statement:   Bank reconciliation statement is a summary of the banking and…

Q: Which of the following is one of the better auditing techniques to detect kiting?(1) Review…

A: (3) Prepare year-end bank reconciliations

Q: Which of the following audit procedures is a dual-purpose test, which tests the effectiveness of…

A: A dual-purpose test is an audit method that serves as a control and substantive test at the same…

Q: Would charges for some other company's safe deposit box that were posted to your account be added to…

A: Bank reconciliation: Bank statement is prepared by the bank. The company maintains its own records…

Q: Which of the following items on a bank reconciliation would require an adjusting journal entry on…

A: An error by the bank: Adjusted in the bank statement. Outstanding cheques: Adjusted in the bank…

Q: Which of the following is a reason that businesses use bank accounts as part of their internal…

A: Internal control system is a preventive measure used by the company to stop the frauds and errors…

Q: Which of the following statements is correct? Select one: a. Account receivable turnover is equal to…

A: Accounts Receivables Turnover Ratio

Q: Notification by the bank that a deposited customer check was returned NSF requires that the company…

A: Bank A/c    Dr     To Account receivables A/c 1. here bank balance will increase when cheque is…

Q: Evidence comes in various types and has different degrees of reliability. Below are some pairs of…

A: The auditors are professional who possesses accounting, auditing, and taxation expertise. The…

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: Which of the following internal control activities will most likely prevent the concealment of a…

A: Given: The prevention of concealment of cash shortage by internal control activities.

Q: When preparing a bank reconciliation, if the adjusted book balance and the adjusted bank balance are…

A: Equal amount of Adjusted book balance and the adjusted bank balance doesn't tell the cash is used…

Q: To test whether debits to accounts receivable represent valid transactions, the auditor should trace…

A: Account receivable  are shown in BALANCE sheet and it is important for business to know the the…

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: Which of the following substantive audit procedures is most likely to be performed by the auditor to…

A: Substantive audit procedures refer to audit processes performed by the auditor to detect material…

Q: Which of the following items appearing on a bank reconciliation require a journal entry to bring the…

A: Bank reconciliation statement is a statement which is prepared to reconcile cash balance as per cash…

Q: Evaluate the effectiveness and state the shortcomings of thepreparation of a bank reconciliation by…

A: Given statement is: “When I reconcile the bank account, the first thing I do is review the sorted…

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: In preparing a bank reconciliation, outstanding checks are deducted from the balance per bank.…

A: Bank reconciliation is done to compare the bank balance as per company’s books with the balance as…

Q: Cash receipts should be deposited on the day of receipt or the following business day. Select the…

A: Comparing the daily cash receipts with the bank deposits will reveal the promptness of deposit of…

Q: What if the drawee bank failed to determine right away that the CHECK is supposed to be dishonored…

A: Cheque bounce is a criminal offence under Section 138 of the Act, for which the payee can file a…

Q: A payment system that uses computerized electronic impulses to affect a cash transaction is called…

A: A payment system that uses computerized electronic impulses to affect a cash transaction is called…

Q: Which of the following would provide an auditor with the most reliable evidence reguarding the…

A: most reliable evidence reguarding the existence of accounts receivable:

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A: Bank reconciliation statement is used to determine the differences between the bank statement…

Q: What internal control procedure ( s ) would provide protection against the following threats ? An…

A: Internal control: this is a procedure in auditing which helps the entity in maintaining the…

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 are characteristics of an effective control of cash disbursements? I.…

A: Cash disbursements: Cash disbursements refers to the cash outflow from the company. The payment can…

Q: The following reconciling items are applicable to the bank reconciliation for Forde Co.Indicate how…

A: Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…

Q: The following can be appropriately included in an Internal Control Questionnaire for Revenue/Receipt…

A: An internal control questionnaire is a document that an auditor distributes to a company's staff…

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: Which of the following statements is correcT? Multple Cholce An endorsement is a written…

A: Endorsement means transfer of check to another person . The person who is transfer the check will…

Q: Which of the following internal control activities most likely would deter lapping of collections…

A: Internal Control: Internal control is a mechanism or procedure that the company implements so that…

Q: In testing controls over cash disbursements, an auditor most likely would determine that the person…

A: The question is related to Auditingbof Cash disbursement.

Q: Accompanying the bank statement was a debit memorandum for an NSF check received from a customer.…

A: Bank reconciliation :          Often, it is seen that cash balance as per books of accounts does not…

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: For which of the following errors would the appropriate amount be subtracted from the balance per…

A: Bank reconciliation is the reconciliation of the Balance as per the books and Balance as per the…

Q: If a check correctly written and paid by the bank for $512 is incorrectly recorded in the company's…

A: Bank reconciliation statement: The bank reconciliation statement (BRS) is prepared to reconcile the…

Q: Which of these arrangements of duties could most likely lead to an embezzlement or theft?a. The…

A:

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.