(b) Prepare the adjustilng pertaining to recording cheques should b IIlau errors relating to recording cash receipts should be nm bank reconciliation statement with internal control deficiencies, 03,4 PSA7.4 Prepare comprehensive wever, given much con sideration to internal control. For example, in an attempt to keep clerical and office expenses of cashier and bookkeeper have been combined. As a result, Rob Rowe handles all cash receipts, keeps the accounting records, and prepares the monthly bank recon- Delicious Pies Pty Ltd is a very profitable small business. It has not, ho ciliations The balance as per the bank statement on 31 October 2020 was $25 732. Unpresented cheques were: no. 62 for $177.45, no. 183 for $210, no. 284 for $354.55, no. 862 for $266.99, no. 863 for $317.52, and no. 864 for $231.39. Included on the bank statement was a credit entry of $280 indicating the collection of a note receivable for Delicious Pies Pty Ltd by the bank on 25 October. This entry had not been recorded by Delicious Pies Pty Ltd entity's ledger showed one cash account with a balance of $30 369.81. The balanc included undeposited cash on hand. Because of the lack of internal controls, Rowe took for personal use all of the undeposited receipts in excess of $5313.71. He then prepared the fol- lowing bank reconciliation statement in an effort to conceal his theft of cash: Cash balance as per company records, 31 October Add: Unpresented cheques $30369.81 No. 862 No. 863 No. 864 $266.99 317.52 231.39 Less: Undeposited receipts Cash balance as per bank statement, 31 October 675.90 31 045.71 5 313.71 $25 732.00 Required (a) Prepare a correct bank reconciliation statement. (Hint: Deduct the amount of the theft from the balance as per company records.) (b) Indicate the three ways that Rowe attempted to conceal the theft and the dollar amount (c) What principles of internal control were violated in this case? involved in each method