Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chase Conor, CPA is on the audit team that is performing the audit of Vaden, Inc. He has obtained the bank reconciliation for December 31,

  1. Chase Conor, CPA is on the audit team that is performing the audit of Vaden, Inc. He has obtained the bank reconciliation for December 31, 2019 from the client and has been instructed to test the reconciliation. He found the following items on the reconciliation

  1. Balance per bank at 12/31/19 was $28,375.
  2. Two deposits in transit 12/29/19 for $4,500 and 12/30/19 for $1,525.
  3. Outstanding Checks:

Check #

Date of Check

Dollar Amount

988

8/30/2019

$2,200

1281

12/26/2019

$675

1285

12/27/2019

$850

1289

12/29/2019

$2,500

1292

12/30/2019

$7,225

  1. Customer note collected by bank: $3,000
  2. Balance per books at 12/31/19 was $17,950

In addition, you have a cutoff bank statement dated 1/7/20 that you received directly from the bank.

Required:

For each of the items a e, describe any procedure(s) that Chase most likely would perform to gather evidence in support of that item.

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

Internal Quality Auditing

Authors: Denis Pronovost

1st Edition

0873894766, 9780873894760

More Books

Students also viewed these Accounting questions

Question

You have

Answered: 1 week ago