You are an auditor in public accounting firm and you are auditing the client's financial statements. Your client is finance company which provide credit for home appliance equipment purchase to end users. You know certainty that the identified user of the financial statement is the bank who has been the client creditors for several years. Client take a bank loan to financing their business and
What is your decision about this finding, will you conclude this as material or not? Explain the concept of materiality in this case!
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- You are the training director for tellers at a large local bank. As part of a new training program you are developing, you have given your trainees this "sample" check register. It is filled out but some of the balances are incorrect. Check Number Date 4/7 4/14 4/16 1208 4/17 4/21 PLEASE BE SURE TO DEDUCT ANY BANK CHARGES THAT APPLY TO YOUR ACCOUNT. Description of Transaction To: Deposit For: To: Mario's Market Debit Card For: To: ATM Withdrawal For: To: Bargain Properties For: To: Electronic Payroll Deposit For: Amount of payment or withdrawal (-) 48 65 135 00 870 00 ✓ Amount of Deposit or interest (+) 755 80 1,350 00 Balance Forward Bal. Bal. Bal. Bal. 469 30 1,225 10 1,176 45 996 45 181 45 Bal. 1,531 45 You instruct your trainees to find and correct the errors in the balances. If your trainees do so, what should the corrected final balance be (in $)? $arrow_forwardI need help with questionarrow_forwardAssume you are a new hire in the accounting department of an organization. One of your responsibilities is the reconciliation of the operating account. After the end of the month you are given a copy of the bank statement and the cancelled checks, and are instructed to perform your reconciliation. You notice that there are some faint markings on a portion of the bank statement that could be alterations. What steps would you take in performing the reconciliation?arrow_forward
- The bank statement showed a non-interest bearing note receivable from a customer that was collected by the bank, which the company listed as a reconciling item on the bank reconciliation statement. The journal entry needed for this reconciling item includes: Multiple Choice a debit to Cash. a credit to Interest Income. a credit to Cash. a debit to Accounts Receivable.arrow_forwardJohn Nowo has been a client of your firm for many years. Whilst preparing his account you become aware and concerned about sources of money into his bank account. You invited John to a meeting and the explanations that he provided were not satisfactory. Required: Can you explain the importance of the Code of Conduct in this specific situation.arrow_forward
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