Question

List of Audit Procedures

A.        Trace to Cash Receipts Journal                                  F.             Inspect bank debit memo

B.       Trace to Cash Disbursement Journal                          G.             Ascertain reason for unusual delay

C.        Compare to 12/31/09 general ledger                          H.            Inspect supporting documents for item not

D.        Confirm Directly with Bank                                                   appearing on cutoff statement

E.        Inspect Bank Credit Memo                                        I.            Trace item on bank rec to cutoff statement

                                                                                                J.            Trace items on the cutoff statement to bank rec

Note: The number of wrong responses will be netted against the correct responses.

(1)   Balance per bank
(2) Deposits in Transit
(3) Outstanding checks
(4) Customer note collected by bank
(5) Error: Check # 1282 written on 12/26/09
(6) Balance per book

Answer 1

S. No.	Items appearing in Bank reconciliation	Audit procedures
1	Balance as per Bank	D. Confirm directly with Bank I. Trace items on Bank reco to cutoff statement
2	Deposits in transit	A. Trace to Cash Receipts Journal G. Ascertain reason for unusual delay H. Inspect supporting documents for reconciling items not appearing on cutoff statements I. Trace items on Bank reco to cutoff statement J. Trace items on the cutoff statement to Bank reco
3	Outstanding Checks	B. Trace to cash disbursement Journal G. Ascertain reason for unusual delay H. Inspect supporting documents for reconciling items not appearing on cutoff statements I. Trace items on Bank reco to cutoff statement J. Trace items on the cutoff statement to Bank reco
4	Customer note collected by Bank	E. Inspect Bank credit memo
5	Error: Check # 1282 written on 12/26/09	I. Trace items on Bank reco to cutoff statement
6	Balance per book	C. Compare to 12/31/09 general ledger