Your firm is the auditor of Thai Textiles Ltd. and you are auditing the financial statements for the year ended June 30, 2023. The company has sales of $2.5 million and a before-tax profit of $150,000. The company has supplied you with the following bank reconciliation at year end. You have entered the “date cleared” on the bank statement (the date on which the cheques and deposits appeared on July’s bank statement).

Required

a. List the matters that cause you concern on the client’s bank reconciliation. Describe the investigations that you will carry out on these items.

b. Explain what adjustments to the financial statements would be required from part (a).

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Balance Per Bank Statement at June 30, 2023 Add: Deposits not Credited CJ date June 30 June 24 June 27 June 28 June 29 June 30 June 30 Type ARL CS CS CS CS CS Date cleared July 4 July 4 July 5 July 6 July 7 July 8 July 11 69 11,364 653 235 315 426 714 362 (9,865) 14,069