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Requirement 1: The balance of Cash is likely to differ from the bank statement balance. What...

Requirement 1:

The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsible for the difference? What is the purpose of preparing a bank reconciliation?

Requirement 2:

Assume that Jane Smith, accounts payable clerk for ABC Inc., stole $48,350 by paying fictitious invoices for goods that were never received. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure that would have prevented or detected the fraud.

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