Identify the cause for only a few outstanding checks listed on the client’s December 31 reconciliation cleared in a January 10 cutoff bank statement.

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Chapter 23, Problem 15.1MCQ

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Identify the cause for only a few outstanding checks listed on the client’s December 31 reconciliation cleared in a January 10 cutoff bank statement.

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The following are misstatements that might be found inthe client’s year-end cash balance (assume that the balance sheet date is June 30):1. The outstanding checks on the June 30 bank reconciliation were underfooted by$2,000.2. A loan from the bank on June 26 was credited directly to the client’s bank account.The loan was not entered as of June 30.3. A check was omitted from the outstanding check list on the June 30 bank reconciliation. It cleared the bank July 7.4. A check was omitted from the outstanding check list on the bank reconciliation. Itcleared the bank September 6.5. Cash receipts collected on accounts receivable from July 1 to July 5 were includedas June 29 and 30 cash receipts.6. A bank transfer recorded in the accounting records on July 1 was included as adeposit in transit on June 30.7. A check that was dated June 26 and disbursed in June was not recorded in the cashdisbursements journal, but it was included as an outstanding check on June 30.a. Assuming that each of…

Auditors typically will find the items lettered A–F in a client-prepared bank reconciliation. Check the below image for client-prepared bank reconciliation - Required:Assume these facts: On October 11, the auditor received a cutoff bank statement dated October 7. The September 30 deposit in transit; the outstanding checks 1281, 1285, 1289, and 1292; and the correction of the bank error regarding check 1282 appeared on the cutoff bank statement.a. For each of the preceding lettered items A–F, select one or more of the following procedures 1–10 that you believe the auditor should perform to obtain evidence about the item. These procedures may be selected once, more than once, or not at all. Be prepared to explain the reasons for your choices.1. Trace to cash receipts journal.2. Trace to cash disbursements journal. 3. Compare to the September 30 general ledger.4. Confirm directly with the bank.5. Inspect bank credit memo.6. Inspect bank debit memo.7. Ascertain reason for unusual delay, if…

While preparing the February 28 bank reconciliation, the accountant identifies the following items: company’s balance according to the general ledger, $23,100; outstanding cheques, $550; interest earned on the chequing account, $100; a customer’s NSF cheque returned by the bank, $1,000. While preparing the reconciliation, the accountant discovers an error in recording a customer’s cheque; the amount has been incorrectly recorded on the books as a cash receipt of $600, while the bank correctly has recorded the amount as $650. What is the company’s adjusted cash balance on February 28? $22,250 $22,200 $22,150 $21,700