Question

Exercises OBJ.2 8-1 p. 403 PE 8-1A Internal control elements Identify each of the following as relating to (a) the control environment, (b) control pro cedures, or (c) monitoring: 1. Hiring of external auditors to review the adequacy of controls 2. Personnel policies 3. Safeguarding inventory in a locked warehouse

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
PE 8-1a
A	Control Environment
B	Monitoring
C	Control Proceedure
Bank Reconcilliation:
	Balance per bank statement		$ 30,645
	Add: Deposits outstanding		$     3,796
	Deduct:
	Bank error—deposit incorrectly credited
	Outstanding checks		$ (8,985)
	Corrected cash balance		$ 25,456
	Book Balance to Corrected Balance
	Balance per books		$ 25,915
	add:
	Collection of note with interest		$     2,505
	Deduct:
	Error in recording check returned		$ (1,000)
	Service charges		$        (70)
	NSF checks		$ (1,894)
	Corrected book balance		$ 25,456