Example 2 What Could Go Wrong? MyTV records a journal entry for December 31 billings, but the customer's bank did not complete the transaction until January 3. Procedures: 1. Obtain and review MyTV's bank reconciliations for the month of December. 2. Send bank confirmations to verify the cash balances in the bank accounts at year-end. 3. Obtain January bank statements and verify all transactions were not recorded until January. Requirements: 1. Identify the assertion that is most directly impacted by the risk / WCGW. Remember, you are auditing cash (and cash equivalents) so the assertion should relate to cash and not other accounts. 2. Indicate what area of accounting is relevant to the assertion and WCGW (i.e., what is the issue?). 3. Determine a broad objective for verifying the assertion / examining the WCGW. 4. For each audit procedure, indicate whether or not the procedure is appropriate to test the assertion and WCGW. a. If you conclude appropriate then explain how the procedure provides evidence relevant to the assertion and WCGW. b. If you conclude inappropriate then explain why the procedure does not provide relevant evidence and/or what assertion the procedure more appropriately applies to