This is cash module question for "Alpine Cupcake Inc" Case study. Please help to figure out the answer each.

NOTE (NEWEST EDITION, I WONT ACCEPT THAT PREVIOUS VERSIONS ANSWER THAT IS FLOATING AROUND BECAUSE ITS INCORRECT)

You are concerned about the adequacy of the substantive audit work done by the engagement team. You decide to carefully and in detail review the cash confirmation and bank reconciliation substantive audit program steps (C.3 and C.4) and the associated audit work papers (C.3.1 to C.4.8). This question relates to Step 4 of the Garcia and Foster Audit Plan. Identify any of the following issues:

a. Did they perform all of the steps associated with the audit program?

b. Did they perform the steps accurately? If not, describe the problem and follow up on it

to the extent possible with the information given.

c. Do you see any other issues or problems with the auditors' work or client documentation?

Working papers attached in PDF, noted in bottom right corner.

1 Did they perform all of the steps associated with the audit program? Yes. The CPAs performed all the necessary steps associated with the audit program. They performed their due duty of reviewing all the necessary documents required in ascertaining the accuracy and existence of the cash balances presented. Alpine Cupcakes Inc. ensured that confirmation letters meant to affirm bank balances and actual existence were sent to the bank holding the company's accounts. The accountants then reviewed the year end bank balance with that provided in the ledger books. Cash receipts and disbursements records were thoroughly reviewed to ensure that they were correct. The auditors then carried out bank reconciliations checks using bank reconciliation records maintained by the client. Minor differences were found during the reconciliation process and were deemed to be immaterial and a judgement was made that the balances were fairly stated. 2 Did they perform the steps accurately? If not, describe the problem and follow up on it to the extent possible with the information given. The audit steps were not performed accurately. The bank reconciliation of the cashbook and bank reconciliation was not accurately done. Based on Bank Statement for Corporate account the interest earned that was earned at the year-end (12/31/20X2) was only $10.00 but during the bank reconciliation it was recorded as $100.00. It also indicates that the ending balance of checking account was $464,118.20 and not $469,108.20 as indicated in the bank reconciliation. This implies that the accuracy of the bank reconciliation was not achieved and so the fraudulent activities could not be detected by the accountants. The cash difference of $4,990.00 determined during the bank reconciliation belong to check number 9132 a check number that is out of range and was payable to Miguel Lopez. This fraud was not detected by the Accountant. Additionally, Lindsey become aware that the check number 4179 issued to Xcel Energy Company on 06/04/20X1 for $621.60 has long been outstanding and never been presented. She than issued the check number 9410 that is out of range on 12/21/20X2 payable to her name for exact the same amount of $621.60. This anomaly was also not detected by the Accountants. 3 Do you see any other issues or problems with the auditors' work or client documentation? For the cash confirmation and bank reconciliation substantive audit program, the auditor is responsible for the Authoring of the confirmation letters and sending them directly to request for confirmation from all banks where the client maintains the accounts and should consider whether it is appropriate to list down balances or intentional leave blank and also request confirmation of nil balances and accounts closed during the period. The client is only required to authorize the bank to provide the requested information to the Accountants. The final conclusion of Garcia and Foster that no issues were found is incorrect in given the above highlighted fraudulent checks that were not identified