Instructions: For the first three scenarios, you are a new auditor on the audit with a supervisor and manager on site with you. Materiality is set at $20,000, tolerable misstatement $15,000 and trivial $3,000. Please respond with your thoughts as to how the situation should be handled and possible issues that could have created the circumstances.

You are assigned to audit cash. You obtain the bank statements, confirmation, and bank cut-off statements. You notice that there is a discrepancy between the confirmation and the bank statement over one days activity totaling $554. It appears that the person at the bank just wrote the wrong days total down. In addition, you note that a block of checks amounting to $1,305.87 was excluded from the bank reconciliation list of outstanding checks. The bank reconciliation also lists an unreconciled difference of $1,276.98. When you ask the clerk, who prepared the bank reconciliation questions, she is extremely unhelpful and dismissive.