The following are misstatements that might be found in the clients year-end cash balance (assume that the balance sheet date is June 30)

:A check that was dated June 26 and disbursed in June was not recorded in the cash disbursements journal, but it was included as an outstanding check on June 30

.A check was omitted from the outstanding check list on the bank reconciliation. It cleared the bank September 6.

The outstanding checks on the June 30 bank reconciliation were underfooted by $2,000.

A loan from the bank on June 26 was credited directly to the clients bank account. The loan was not entered as of June 30.

A check was omitted from the outstanding check list on the June 30 bank reconciliation. It cleared the bank July 7.

Cash receipts collected on accounts receivable from July 1 to July 5 were included as June 29 and 30 cash receipts.

A bank transfer recorded in the accounting records on July 1 was included as a deposit in transit on June 30.

Required

a. Assuming that each of these misstatements was intentional (fraud), state the most likely motivation of the person responsible.

b. What control can be instituted for each fraud to reduce the likelihood of occurrence?

c. List an audit procedure that can be used to discover each fraud.