Attached is an audit working paper prepared by a new staff auditor based on his testing of a client's bank reconciliation. REQUIRED: Indicate the deficiencies in the working paper prepared by the auditor for the client's bank reconciliation. Be specific with your answers. REFERENCE PREPARER DATE A5 SA $ 1,845,200 @ 158,950 STACK ENTERPRISES BANK RECONCILIATION DECEMBER 31, 20X7 Balance Per Bank, 12/31/X7 Add: Deposits in Transit, 12/31/X7 Less: Outstanding Checks No. 6125 dated 12/24 No. 6126 dated 12/26 No. 6127 dated 12/27 No. 6129 dated 12/29 $ 145,850 # 15,750 # 245,800 # 221,650 # 120,125 # No. 6130 dated 12/31 Reconciled Bank Balance ( 749,175) $ 1,254,975 $ 1,310,625 % Balance Per Books (General Ledger), 12/31/X7 Less: Check from West, Inc. deposited on 12/20/X7 and returned by bank as NSF on 12/24/X7 Bank Service Charges per bank statement Reconciled Book Balance 55,600 50 (55,650) @ $ 1,254.975 @ Agreed to 12/31/X7 bank statement obtained from client/SA Agreed to cash receipts journal / SA Agreed to cash payments journal / SA Agreed to client bank reconciliation/SA # 9