Question: Explain why, in verifying bank reconciliations, most auditors emphasize the possibility of a nonexistent deposit in transit being included in the reconciliation and an outstanding

Explain why, in verifying bank reconciliations, most auditors emphasize the possibility of a nonexistent deposit in transit being included in the reconciliation and an outstanding check being omitted rather than the omission of a deposit in transit and the inclusion of a nonexistent outstanding check.

Step by Step Solution

★★★★★

3.48 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The misstatements that are of the greatest concern ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

185-B-A-A-A (324).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

The Transportation Security Administration (TSA) examined the possibility of a Registered Traveler program. This program is intended to be a way to shorten security lines for trusted travelers. USA...

The possibility of a power outage seems to grow every year because of demand and an aging infrastructure. What can/should companies do to mitigate this risk?

Consider the possibility of a rock slide starting at point A and ending at B, as shown in the sketch, and suppose the slide is driven by gravity and resisted by friction. Derive expressions for...

in Application of the Audit Process to the Other Cycles Explain why it is common for auditors to send confirmation requests to vendors with "zero balances" on the client's accounts payable listing...

Application of the Audit Process to the Other Cycles Answer the following questions: Explain why it is common for auditors to send confirmation requests to vendors with "zero balances" on the...

plz finish the requirements of module 6-10, if u have any question, let me know Go to www .cengage.com/accounting/rittenberg for the Ford and Toyota materials. Source and Reference Ford 10-K, Toyota...

I have attached both the chapters from which you will be answering the following question. Ch 8 (p 387 of text or p 35 of the pdf) ?Exercise D. Prepare the bank reconciliation and any required...

1. A set of characteristics that helps to define a seriousness about employees' attitudes about the control activities in a company is referred to as A. Management assertions. B. Control environment....

Alpine Cupcakes, Inc. Audit Case Assignments Assignment: Before beginning the assignment, take a moment to look through the papers in this module. Note in the lower left-hand corner that some...

Alpine Cupcake Audit Case- Cash Module Question 4: You have concerns about the adequacy of the substantive audit work done by the engagement team. Review in detail the cash confirmation and bank...

Coghlan Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $16,380. All sales are subject to a 5% sales tax. Compute sales taxes payable, and...

Kamau steals the share certificate for Patel who is the original allotee. He gets the shares transferred in his own name by forging the signature of Patel on the transfer deed and obtains a new share...

Decisions made by financial managers should primarily focus on increasing which one of the following? total sales market value per share of outstanding stock size of the firm gross profit per unit...

Gibson Greetings, Inc., had a plant in Berea, Kentucky, where the workers belonged to the In- ternational Brotherhood of Firemen & Oilers. The old CBA expired, and the parties negotiated a new one,...

How is management's risk assessment relevant to the audit?

What is the role of monitoring to support internal controls?

Explain the difference between a substantive approach and a combined approach.

1. The necessary adjustment to the sales amount shown on the income statement to arrive at cash collections from customers is: a subtract the change in accounts receivable b add all the change in...

Rouen Industries had the following operating results for 2015: sales = $28,000; cost of goods sold = $19,660; depreciation expense = $5,180; interest expense = $2,490; dividends paid = $1,350. At the...

Question # 1 What is the primary goal when finding suitable websites for advertising? Revisit Choose the best option To increase website traffic To identify websites that ahign with your To reduce...