Criticize the following working paper that you are reviewing as senior auditor on the December 31 audit of Pratt Company.

Pratt Company Cash

Per bank $44,874.50,/

Deposit in transit 5,843.10(1)

Bank Charges (2.80)(2)

Outstanding checks

1,246.40,/

3,412.72,/

840.00,/

1,013.60 (3)

1,200.00(3)

967.50V 8,680.22

Per ledger f $42,034.58, /

f Footed column

/ Verified

(1) The client saved a copy of the deposit slip that is filled out. Per discussion with client. this represents cash sales on 12/31/XO. I agreed totals to the Cash Receipts Journal on 12/31/XO. Properly posted on bank statement as having been received by bank on 1/9/X1 .

(2) Represents December bank service charge. Agreed charge to December bank statement in which bank charged client $2.80. Recorded as cash disbursement in January of 20X1.

(3) Per client, check written (to pay account receivable) before year-end, but not mailed until 1/2/X1 because on 12/31/XO the last office mail was picked up at 3 p.m. due to year-end party of mail room employees.

J.M.W

1-15-X1