Eagle River Plastics Company has a major branch located in Phoenix. The branch deposits cash receipts daily, and periodically transfers the receipts to the company's home office in Eagle River. The transfers are accounted for as intercompany entries into the home office and branch office accounts. All accounting, however, is performed at the home office under the direction of the assistant controller. The assistant is also responsible for the transfers. The controller, however, independently reconciles the bank account each month or assigns the reconciliation to someone in the department (which, in some cases, could be the assistant controller).The company is relatively small; thus, the controller is also the financial planner and treasurer for the company. As part of the year-end audit, you are assigned the task of conducting an audit of bank transfers. As part of the process, you prepare the following schedule of transfers:

Required
a. Identify the audit procedures that would be used to test the correctness of the client’s bank transfers identified.
b. Identify any adjusting journal entries that would be needed on either the home or branch office accounting records as a result of the precedingtransactions.

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Information from client's records Information per bank statements Date Cleared Date per Branch Date per Amount Date Deposited Home Office per Home Bank per Branch Bank 12-27 12-29 12-31 $23,000 $40,000 $45,000 $14,000 $28,000 $10,000 12-31 12-31 1-2 12-31 1-3 1-3 12-31 12-31 1-3 12-31 1-7 12-31 1-3 1-7 1-8 1-5 1-12 1-5 1-2 1-5 1-3