During your reconciliation of bank accounts in an audit, you find that a number of checks for

Question:

During your reconciliation of bank accounts in an audit, you find that a number of checks for small amounts have been outstanding for more than a year. Does this situation call for any action by the auditor? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of Auditing and Other Assurance Services

ISBN: 978-0078025617

19th edition

Authors: Ray Whittington, Kurt Pany

See More Books

Question Posted: Oct 25, 2014 06:03 AM

See More Questions

In your audit of Garza Company, you find that a physical inventory on December 31, 2019, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items...
You find that a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that banks for...
Why is the monthly reconciliation of bank accounts by an independent person an important internal control over cash balances? Which individuals will generally not be considered independent for this...
International Paper reported the following items for the current year: Sales = $3,500,000; Cost of Goods Sold = $1,250,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000;...
Why is the wobbly motion of a single star an indication that the star has one or more planets orbiting around it?
Use the product rule to simplify the expressions in Exercises 4144. In Exercises 4344, assume that variables represent nonnegative real numbers. V300
We like opinion polls. Are Americans interested in opinion polls about the major issues of the day? Suppose that 40% of all adults are very interested in such polls. (According to sample surveys that...
The following is a list of account titles and amounts (dollars in millions) from a recent annual report of Hasbro, Inc., a leading manufacturer of games, toys, and interactive entertainment software...
Henries Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $151,640, including freight and installation. Henries estimated the new...
SABA Enterprises needs a cash budget for the month of June. The following information is available: a. The cash balance on June 1 is $4,000. b. Sales for May and June are $50,000 and $40,000,...
Prepare an example of lapping of cash receipts, showing actual transactions and the cash receipts journal entries.
What action should be taken by the auditors when the count of cash on hand discloses a shortage?
What is an aging schedule? How is the aging schedule used to estimate the amount of uncollectibles?
Air at $1 \mathrm{~atm}$ and $25^{\circ} \mathrm{C}$ flows in a 4-cm-diameter glass pipe at a velocity of $7 \mathrm{~m} / \mathrm{s}$. The friction factor for this flow is (a) 0.0266 (b)...
Find the regime of the boundary layer at the location of $0.1 \mathrm{~m}$ from the leading edge of an aerofoil, if the airspeed is $80 \mathrm{~ms}^{-1}$, and air condition is at that of sea...
``Nuclear Deterrence,'' by Harvey A . Smith, UMAP327. The author analyzes the stability of the arms race, assuming objectives similar to those suggested by General Taylor. The module develops...
A saturated vapor feed at $1000.0 \mathrm{kmol} / \mathrm{h}$ of methanol $(5.0 \mathrm{~mol} \%)$ and water $(95.0 \mathrm{~mol} \%)$ is fed to a distillation column with 18 stages plus a...
Use the partition functions in Equations 1.98, 1.99, and 1.100 to find the translational, rotational, and vibrational contributions to the average energy of a diatomic molecule. Compare each result...
Paulo buys a house. His 20 -year mortgage comes to $\$ 153,899$ with $4.21 \%$ interest. Find Evan's monthly payments.
Create a data model for one of the processes in the end-of-chapter Exercises for Chapter 4. Explain how you would balance the data model and process model.
Choose a country of interest to you. (The GLOBE study rankings for 62 countries are at https://globeproject.com/study_2004_2007# surveyed.) Analyze the country in terms of the following cultural...
Which of the following procedures would a CPA most likely perform in planning a financial statement audit? a. Make inquiries of the clients lawyer concerning pending litigation. b. Perform cutoff...
Which of the following statements is correct concerning analytical procedures used in planning an audit engagement? a. They often replace the tests of controls that are performed to assess control...
Which of the following statements is correct concerning analytical procedures used in planning an audit engagement? a. They often replace the tests of controls that are performed to assess control...
Your company produces a health magazine. Its sales data for 1 - year subscriptions are as follows: Year of Operation Subscriptions Sold % Expired at Year End 2 0 2 0 $ 3 0 0 , 0 0 0 5 2 0 2 1 $ 6 4 7...
Problem 3 - 2 0 ( Static ) Calculate profitability and liquidity measures LO 3 - 3 , 3 - 4 , 3 - 6 Presented here are the comparative balance sheets of Hames Incorporated at December 3 1 , 2 0 2 3...
3 Required information [The following information applies to the questions displayed below) John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter. Samantha. In 2020,...

During your reconciliation of bank accounts in an audit, you find that a number of checks for

Question:

Step by Step Answer:

The old outstanding checks should be eliminated as they ca...View the full answer

Principles of Auditing and Other Assurance Services

Students also viewed these Auditing questions