Bert Finney, CPA, was engaged to conduct an audit of the financial statements of Clayton Realty Corporation for the month ending January 31, 2004. The examination of monthly rent reconciliations is a vital portion of the audit engagement.

The following rent reconciliation was prepared by the controller of Clayton Realty Corporation and was presented to Finney, who subjected it to various audit procedures:

Schedules A, B, and C are available to Finney but are not presented here. Finney has conducted a study and evaluation of the system of internal control and found that it could be relied on to produce reliable accounting information. Cash receipts from rental operations are deposited in a special bank account.

Required:

What substantive audit procedures should Finney employ during the audit to substantiate the validity of each of the dollar amounts marked by the dagger (+)?

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Clayton Realty Corporation Rent Reconciliation For the Month Ended January 31, 2004 Gross apartment rents (Schedule A) Less vacancies (Schedule B) Net apartment rentals Less unpaid January rents (Schedule C) Total Add prepaid rent collected (Apartment 116) $1,600,800+ 20,500+ 1,580,300 7,800+ 1,572,500 500+ Total cash collected $1,573,000+