Procedure 1. Obtain a lead schedule. a. Tie prior-year amounts to the 10-k and current-year amounts to the trial balance. b. Foot the schedule. c. Post any adjustments to the lead schedule. d. Add a column for audited balances that reflects proposed adjustments. 2. Obtain a bank reconciliation for the checking account. a. Clerically test the schedule (foot it). b. Tie bank balance to the cash confirmation and bank statement. c. Tie the book balance to the lead schedule. d. Tie deposits in transit and outstanding checks to detailed schedules. 3. Obtain a schedule of outstanding checks. a. Use the cutoff bank statement to verify that outstanding checks cleared after year end. b. Verify that the last check written during the year is the last check included on the outstanding check list. c. Use the cutoff bank statement to verify that all checks that belong on the outstanding check list are included. d. Total the amount of the checks and agree total to the bank reconciliation. 4. Obtain a schedule of deposits in