The primary audit procedure used in testing cash balances is confirmation. In order to test confirmation, auditors ask the company's bankers to verify the balance of the bank accounts directly and the responses are sent solely to the auditors. As a part of cash testing, auditors also test the bank reconciliation process. By examining cash confirmations, auditors gain assurance over the bank balance. 

Required: 

(i) Explain any TWO (2) types of cash accounts. 

(ii) Identify any FIVE (5) key pieces of information which should be contained on a bank confirmation letter. 

(iii) Explain why it is important to check outstanding cheques at the year end.