3 OPTIONS ARE CORRECT

Your firm is the auditor of Thai Textiles Ltd. and you are auditing the financial statements for the year ended June 30, 2020. The company has sales of $2.5 million and a before-tax profit of $150,000. The company has supplied you with the following bank reconciliation information at year end. You have noted the following: - 10 outstanding cheques listed on the June 30, 2020 bank reconciliation. Nine of these cheques cleared between July 18th and July 21st The 10th cheque cleared July 4th - Outstanding deposits from June 24th, June 28th, and June 30th were cleared by the bank July 4th, July 6th, and July 11th respectively. Which of the following accurately describe the above scenario? The delay in the banking of cash sales could indicate window dressing Auditor should inquire as to the delay in sending cheques are year end There are no issues with the bank reconciliation as all items cleared properly after year end The delay in clearing cheque payments could indicate window dressing Check if the delay in depositing or cashing cheques is because of the bank processes