Criticize the following working paper that you are reviewing as senior auditor on the December 31 audit of Pratt Company.

➀The client saved a copy of the deposit slip that is filled out. Per discussion with client, this represents cash sales on 12/31/X0. I agreed totals to the Cash Receipts Journal on 12/31/X0. Properly posted on bank statement as having been received by bank on 1/9/X1.
➁Represents December bank service charge. Agreed charge to December bank statement in which bank charged client $2.80. Recorded as cash disbursement in January of 20X1.
➂Per client, check written (to pay account receivable) before year-end, but not mailed until 1/2/X1 because on 12/31/X0 the last office mail was picked up at 3 p.m. due to year-end party of mail roomemployees.

  • CreatedOctober 25, 2014
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