Evaluate the effectiveness and shortcomings of the preparation of bank reconciliation by the controller by firstly reviewing the sorted list of returned checks and find which numbers are missing and then determine the amount of the uncleared checks by referring to the cash disbursements journal. If the bank account reconciles by doing this then the reconciliation is done. If it does not, then controller search for deposits in transit, checks from the beginning outstanding check list that still have notcleared, other reconciling items, and bank errors until it reconciles.

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Chapter 23, Problem 3RQ

To determine

Evaluate the effectiveness and shortcomings of the preparation of bank reconciliation by the controller by firstly reviewing the sorted list of returned checks and find which numbers are missing and then determine the amount of the uncleared checks by referring to the cash disbursements journal. If the bank account reconciles by doing this then the reconciliation is done. If it does not, then controller search for deposits in transit, checks from the beginning outstanding check list that still have notcleared, other reconciling items, and bank errors until it reconciles.

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Evaluate the effectiveness and state the shortcomings of thepreparation of a bank reconciliation by the controller in the manner described in thefollowing statement: “When I reconcile the bank account, the first thing I do is reviewthe sorted list of returned checks and find which numbers are missing. Next I determinethe amount of the uncleared checks by referring to the cash disbursements journal. If thebank account reconciles at that point, I am all finished with the reconciliation. If it doesnot, I search for deposits in transit, checks from the beginning outstanding check listthat still have not cleared, other reconciling items, and bank errors until it reconciles. Inmost instances, I can do the reconciliation in 20 minutes.”

Which of the following statements about reconciling items is true? A Debit memoranda should be subtracted from the book side of the bank reconciliation. B An NSF check returned to the bank should be added back to book cash. C If a company discovers errors in its general ledger Cash account, it should call the bank to have the errors corrected. D Adjustments to the bank side of the bank reconciliation should be booked as adjustments to the general ledger Cash account. Please advise, the answer D is correct?

Each situation below describes an internal control weakness in the cash receipts process. Identifywhich of the five internal control principles is violated, explain the weakness, and then suggest achange that would improve internal control.a. Cashiers prepare a cash count summary, attach tapes from the cash register showing total receipts,and then prepare a bank deposit slip, which they take to the bank for deposit. After the deposit ismade, all documents are forwarded to the accounting department for review and recording