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Auditing Procedures for Bank Reconciliation

1. The auditor would most likely perform procedures D (confirm directly with bank) and I (trace items on the bank reconciliation to cutoff statement) to gather evidence for the balance per bank. 2. The auditor would most likely perform procedures A (trace to cash receipt journal), G (ascertain reason for unusual delay), H (inspect supporting documents for reconciling items not appearing on cutoff statement), I (trace items on the bank reconciliation to cutoff statement), and J (trace items on the cutoff statement to bank reconciliation) to gather evidence for the deposit in transit. 3. The auditor would most likely perform procedures B (trace to cash disbursement journal), G (ascertain reason

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16 views2 pages

Auditing Procedures for Bank Reconciliation

1. The auditor would most likely perform procedures D (confirm directly with bank) and I (trace items on the bank reconciliation to cutoff statement) to gather evidence for the balance per bank. 2. The auditor would most likely perform procedures A (trace to cash receipt journal), G (ascertain reason for unusual delay), H (inspect supporting documents for reconciling items not appearing on cutoff statement), I (trace items on the bank reconciliation to cutoff statement), and J (trace items on the cutoff statement to bank reconciliation) to gather evidence for the deposit in transit. 3. The auditor would most likely perform procedures B (trace to cash disbursement journal), G (ascertain reason

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Name: CABALLERO, SARAH JANE A.

Score:
Professor: Ms. Shereen Mae Villaruz Yr/Cr/Sec: 3 BSAccty - A Date:

ACTIVITY 2

Items 1 through 6 represent the items that an auditor ordinarily would find on client-
prepared bank reconciliation. The accompanying List of Auditing Procedures
represents substantive auditing procedures. For each item, select one or more
procedures, as indicated, that the auditor most likely would perform to gather
evidence in support of that item. The procedures on the List may be selected once,
more than once, or not at all. Write the letter of your choice on the blank provided
before each item. (16 marks)
Assume
 The client prepared the bank reconciliation on 10/02/21.
 The bank reconciliation is mathematically accurate.
 The auditor received a cutoff bank statement dated 10/07/21 directly from the
bank on 10/11/21.
 The 09/30/21 deposit in transit, outstanding checks #1281, #1289, and
#1292, and the correction of the error regarding check #1282 appeared on
the cutoff bank statement.
 The auditor assessed control risk concerning the financial statement
assertions related to cash at the maximum.

List of Auditing Procedures


A. Trace to cash receipt journal F. Inspect bank debit memo.
B. Trace to cash disbursement journal. G. Ascertain reason for unusual delay.
C. Compare to 09/30/21 general ledger. H. Inspect supporting documents for
reconciling items not appearing on
cutoff statement.
D. Confirm directly with bank. I. Trace items on the bank reconciliation
to cutoff statement.
E. Inspect credit memo. J. Trace items on the cutoff statement to
bank reconciliation.
Chuya Company
BANK RECONCILIATION
METROBANK ACCOUNT
September 30, 2021

1. Select 2
D, I Procedures Balance per bank 28,375

2. Select 5
A, G, H, I, J Procedures Deposit in Transit
9/29/2021 4,500
9/30/2021 1,525 6,025
3. Select 5
B, G, H, I, J Procedures Outstanding Checks
#988 08/30/21 2,200
#1281 09/26/21 675
#1285 09/27/21 850
#1289 09/29/21 2,500
#1292 09/30/21 7,225 (13,450)
20,950
4. Select 1
E Procedure Customer note collected by bank (3,000)

5. Select 2
E, I Procedures Error: Check #1282, written on 09/26/21
for P270 was erroneously charged by bank as
P720; bank notified on 10/02/21 450
6. Select 1
C Procedure Balance per books 18,400

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