Question 4 - Internal Control and Audit of Cash Balances (continued) PART B 1. The following audit procedures are concerned with tests of details of general cash balance: I. Obtain a bank confirmation from each bank with which the client does business. II. Trace all material unpresented cheques on the bank reconciliation and not seen on the cut-off bank statement to the current year cash disbursement records. III. Compare the balance on the bank reconciliation obtained from the client with the bank confirmation. IV. Trace deposit in transit on the bank reconciliation to the cut-off bank statement and the current year cash receipts journals. Required Explain the objective of each of the above audit procedures. (4 marks) 2. Identify and explain TWO procedures that an auditor may perform to uncover fraud directly related to year end cash balances. (2 marks)