Question

Cynthia Company

Bank reconciliation which of the audit procedures listed below would most likely have been

used to verify the accuracy of the amounts identified of Balance per bank

December 31, 2018

Balance per bank 12/31                    $18,375.91 a

Deposits in Transit

12/30                   1,471.10$ b

12/31                    2,840.69   b              4,311.79

Outstanding Checks

6/30       837          6,000.00 c

12/15 1941              671.80

12/20 1966              320.00

12/21 1984           1,855.42

12/23   1985          3,621.22 c

12/28   1985          2,576.89   c

12/30   1991          4,420.88   c          (19,466.21)

NSF check returned 12/29                      200.00 d

December bank Charges                         550.00 e

Error in Check 1932, dated 11/20          148.10   f

Customer note collected by the bank, 12/28 (3,025.00) g

Balance per book                                  1,094.59    $ h

1

Required: Determine which of the audit procedures listed below would most likely have been

used to verify the accuracy of the amounts identified (a-h):

Agreed to bank confirmation received directly from the bank.

Foot the schedule and agree to the Cash lead sheet.

Agreed check to the bank cutoff statement dated 1/15/19 as to date and amount.

Agreed check to the bank statement dated 12/31/18 as to date and amount.

Agreed deposit amount to the bank statement dated 12/31/18 as to date and amount.

Agreed check to the vendor invoice as to date and amount.

Agreed deposit to the bank cutoff statement dated 1/15/19 as to date and amount.

Agreed to the difference between the amount recorded in the November cash disbursements journal and the amount reported on the bank statement dated 12/31/18

Agreed charge to the bank statement dated 12/31/18

Agreed charge to the bank cutoff statement dated 1/15/19

Agreed to notice from bank re: returned customer check

Agreed amount to ending balance on bank statement dated 12/31/18

2

There are a number of items on the reconciliation that should have been recorded in the

general ledger on or before 12/31 but weren't. What's the total amount of those items?

(Enter as a positive if Cash should be debited. Enter in parentheses if Cash should be

credited.

3

If those items had been recorded in the correct period, what would the Cash balance

per book have been?

4

Based on the work performed on the reconciliation, which two management assertions are false

(assuming no adjusting journal entries were made?

All reported transactions occurred. (Existence)

All transactions occurring during the period were reported. (Completeness)

Cash was reported at the correct amount. (Valuation)

Cynthia Company has a right to all-cash reported. (Rights and Obligations)

Cash was classified correctly in the financial statements and all required disclosures were

included. (Presentation/Disclosure)

Answer 1

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Cynthia Company Bank reconciliation which of the audit procedures listed below would most likely have been used to verify the accuracy of the amounts identified of Balance per bank 18,375.91 1,471.10 2.840.694.311.79 December 31, 2018 Balance per bank 12/31 Deposits in Transit 12/30 12/31 Outstanding Checks 6/30 837 12/15 1941 12/20 1966 12/21 1984 12/23 1985 12/28 1985 12/30 1991 6,000.00 671.8 320 1,855.42 3,621.22 2,576.89 4,420.88 19,466.21 NSF cheok returned 12/29 December bank Charges Error in Check 1932, dated 11/20 Customer note collected by the bank, 12/28 Balance per book 200 550 148.1 -3,025.00 2001 5501 148.1 -3025 1,094.59

Answer to the question b,c,d,e,f.g Required: Determine which of the audit procedures listed below would most likely have been used to verify the accuracy of the amounts identified la-h): Agreed to bank confirmation received directly from the bank. Foot the schedule and agree to the Cash lead sheet. Agreed check to the bank outoff statement dated 1/15/19 as to date and amount Agreed check to the bank statement dated 12/31/18 as to date and amount. Agreed deposit amount to the bank statement dated 12/31/18 as to date and amount. Agreed check to the vendor invoice as to date and amount Agreed deposit to the bank cutoff statement dated 1/15/19 as to date and amount. Agreed to the difference between the amount recorded in the November cash disbursements journal and the amount reported on the bank statement dated 12/31/18 Agreed charge to the bank statement dated 12/31/18 Agreed charge to the bank cutoff statement dated 1/15/19 Agreed to notice from bankre: returned customer check Agreed amount to ending balance on bank statement dated 12/31/18 There are a number of items on the reconciliation that should have been recorded in the general ledger on or before 12/31 but weren't. What's the total amount of those items? 2 17281.3 (Enter as a positive if Cash should be debited. Enter in parentheses if Cash should be credited) 3 If those items had been recorded in the correct period, what would the Cash balance per book have been? 18,375.91

Based on the work performed on the reconciliation, which two management assertions are false (assuming no adjusting journal entries were made? All reported transactions occurred. (Existence) All transactions occurring during the period were reported. (Completeness) Cash was reported at the correct amount. (Valuation) Cynthia Company has a right to all-cash reported. (Rights and Obligations) Cash was classified correctly in the financial statements and all required disclosures were included. (Presentation/Disclosu FALSE FALSE -