You are the senior auditor-in-charge of the July 31, 20X0, audit of Reliable Auto Parts, Inc. Your newly hired staff assistant reports to you that she is unable to complete the four-column proof of cash for the month of April 20X0, which you instructed her to do as part of the consideration of internal control over cash.
Your assistant shows you the working paper that she has prepared. Your review of your assistant’s work reveals that the dollar amounts of all the items in her working paper are correct. You learn that the accountant for Reliable Auto Parts, Inc., makes no journal entries for bank service charges or note collections until the month following the bank’s recording of the item. In addition, Reliable’s accountant makes no journal entries what-so-ever for NSF checks that are redeposited and cleared. Your assistant’s working paper appears below.
Prepare a corrected four-column proof of cash in good form for Reliable Auto Parts, Inc., for the month of April20X0.

  • CreatedOctober 25, 2014
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