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 t...

a Obtaining a cutoff bank statement permits the examination of many checks listed as outstanding in ...

Explain the objectives of each of the following audit procedures for cash: a. Obtain a cutoff bank

Question:

Explain the objectives of each of the following audit procedures for cash:
a. Obtain a cutoff bank statement subsequent to the 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.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...