The ABC Corporation pays employees on the 28th day of each month. The last payroll of the year was on 12/28/2021. The payroll account is a separate bank account that is only used for payroll. For control purposes, the account is funded for the exact amount of the payroll on the 28th of each month.

The ABC Corporation pays employees on the 28th day of each month. The last payroll of the year was on 12/28/2021.

The payroll account is a separate bank account that is only used for payroll. For control purposes, the account is funded for the exact amount of the payroll on the 28th of each month.

The bank reconciliation had the following outstanding checks as of 12/31/2021:

Payroll Date Check

Check Number Written Amount

P17872 14-Dec 1,568.55

P17894 28-Dec 1,822.03

P17895 28-Dec 1,701.33

P17897 28-Dec 1,622.51

P17899 28-Dec 963.52

P17900 28-Dec 2,105.67

P17903 28-Dec 1,327.84

The auditors were sent a cutoff bank statement as of 1/8/2022. The following payroll checks cleared on the cutoff bank statement:

Payroll Date Check

Check Number Cleared Amount

P17872 1-Jan 1,568.55

P17895 3-Jan 1,701.33

P17897 3-Jan 1,622.51

P17899 1-Jan 963.52

P17900 2-Jan 2,105.67

P17903 6-Jan 1,327.84

P17904 2-Jan 3,427.27

P17905 3-Jan 2,657.01

P17906 3-Jan 2,488.81

What concerns would the auditors have about the bank reconciliation and ABC Corporation's internal controls?