Question: Velma Inc is a very modern company that strives to

Velma Inc. is a very modern company that strives to be paperless in all its administrative functions.
Velma has arranged with its bank to receive all its banking transaction information online, through the bank’s online banking website. Velma’s auditor wants to get a cutoff bank statement as of January 20, 20X1, to complete the audit of the bank reconciliation.

a. Explain what a cutoff bank statement is and its purpose in auditing the bank reconciliation.
b. Describe one way that Velma’s auditor can obtain a cutoff bank statement if the bank is unable to provide a paper copy.

Sale on SolutionInn
  • CreatedJanuary 09, 2015
  • Files Included
Post your question