Explain the objectives of each of the following audit procedures for cash:

a. Obtain a cutoff bank statement subsequent to the balance sheet date.

b. Compare paid checks returned with the bank statement to the list of outstanding checks in the previous reconciliation.

c. Trace all bank transfers during the last week of the audit year and the first week of the following year.

d. Investigate any checks representing large or unusual payments to related parties.

Answer rating: 100% (QA)

a A cutoff bank statement allows examination of checks outstanding in the bank reconciliation and es... View the full answer