Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone help me please! 23-20 (Objectives 23-3, 23-4) The following are misstatements that might be found in the client's year-end cash balance (assume that

Can someone help me please!

23-20 (Objectives 23-3, 23-4) The following are misstatements that might be found in the client's year-end cash balance (assume that the balance sheet date is June 30):

  • 1.The outstanding checks on the June 30 bank reconciliation were underfooted by $2,000.
  • 2.A loan from the bank on June 26 was credited directly to the client's bank account. The loan was not entered as of June 30.
  • 3.A check was omitted from the outstanding check list on the June 30 bank reconciliation. It cleared the bank July 7.
  • 4.A check was omitted from the outstanding check list on the bank reconciliation. It cleared the bank September 6.
  • 5.Cash receipts collected on accounts receivable from July 1 to July 5 were included as June 29 and 30 cash receipts.
  • 6.A bank transfer recorded in the accounting records on July 1 was included as a deposit in transit on June 30.
  • 7.A check that was dated June 26 and disbursed in June was not recorded in the cash disbursements journal, but it was included as an outstanding check on June 30.

Required

  • a.Assuming that each of these misstatements was intentional (fraud), state the most likely motivation of the person responsible.
  • b.What control can be instituted for each fraud to reduce the likelihood of occurrence?
  • c.List an audit procedure that can be used to discover each fraud.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

119-49633-5, 1119496497, 1119496330, 978-1119496496

More Books

Students also viewed these Accounting questions

Question

2. To store it and

Answered: 1 week ago