The controller of ABC Inc., a nonissuer, prepared the 5 exhibits relating to ABC 's cash position at year-end. A new staff auditor with your CPA firm has begun to audit cash and has a number of points he suggests should be forwarded to the engagement partner. Your job as senior on the engagement is to review the various points made by the staff auditor. The materiality for the audit has, at this point, been set at $50,000. To revise the memo, click on each segment of underlined text below and select the needed correction, if any, from the list provided. the underlined text is already correct in the context of the document, select [Original Text] from the list. If

The controller of ABC Inc., a nonissuer, prepared the 5 exhibits relating to ABC 's cash position at year-end. A new staff auditor with your CPA firm has begun to audit cash and has a number of points he suggests should be forwarded to the engagement partner. Your job as senior on the engagement is to review the various points made by the staff auditor. The materiality for the audit has, at this point, been set at $50,000. To revise the memo, click on each segment of underlined text below and select the needed correction, if any, from the list provided. the underlined text is already correct in the context of the document, select [Original Text] from the list. If removal of the entire underlined text is the best revision to the document as a whole, select [Delete Text] from the list when that option is available. To: Audit Senior From: Staff Auditor Re: ABC Cash Work Date: January 11 , year 2 I have a number of findings we should forward to the engagement partner related to the auditing procedures I applied to ABC's cash accounts: Outstanding Checks: I noted that the outstanding check list is not totaled properly. The $7,122.08 should be $9,122.08. We should prepare a journal entry debiting cash and crediting miscellaneous expense. 0 Choose an option below: [Original text]We should prepare a journal entry debiting cash and crediting miscellaneous expense. [Delete Text] We should prepare a journal entry crediting cash and debiting bank processing expense. We should perform additional procedures to determine why the account reconciliation needs this item to be in balance. We should create a $2,000 negative item on the list of outstanding checks so the total agrees to $9122.08. CANCEL ABC Inc. Outstanding Checks - General Account 12/31/year 1 CP (Client Prepared)