Question: What would an auditor do when a discrepancy in the re-performance of the reconciliation of the cash account is discovered?

What would an auditor do when a discrepancy in the re-performance of the reconciliation of the cash account is discovered?

Step by Step Solution

★★★★★

3.46 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

When an auditor discovers a discrepancy in the reperformance of the reconciliation of the cash account several steps must be undertaken to address and ... 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

Students Have Also Explored These Related Accounting Questions!

What should an auditor do when she finds deviations or misstatements when sampling?

What should an auditor do when violation of securities laws is suspected?

What alternative procedures can an auditor do when he is unable to attend a physical inventory?

Read the business characteristics of high inherent risk on page 145 of your text and think of a company that you would consider to be a risky audit. Go to the company's website and review their...

Page 1 of 9 Audit and Assurance Written Assignment Case Study: Cash Inquiry Key Information: Client: Brownie Bakers Inc Fiscal year end: December 31 Tolerable misstatement: $50,000 Planned scope for...

Can someone solve this Fleming, Fleming, and Garcia, a local CPA firm, provided the following data for individual returns processed for March (output is measured in number of returns): Units,...

I will upvote thanks for helping in advance 2020 36,410 21,331 25,251 9,208 (71) (2,582) (554) 441 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2018...

The purpose of the statement of cash flow is: Question 46 options: a) to identify the uses of cash b) to identify the sources and uses of cash c) to identify the profits of the business generated...

How can RPA benefit an enterprise? It can save time and costs on mundane and repetitive tasks. It can reduce human errors and bias and let humans focus on low-value-added tasks. It can eliminate the...

You are the auditor from a CPA firm who each year audits a company called ABC Grocers, Inc. ABC Grocers, understandably, has a large amount of their assets tied up in Inventory.Some of their...

The widget store manager points out that not all widget brands get equal purchase rates. A brand on premium shelf space has a 0.28 probability of being selected by each customer. He is willing to...

C. Gharpurey, Inc., had the following transactions during the year. Classify each transaction as (O) an operating activity, (I) an investing activity, (F) a financing activity, or (X) a noncash...

Evaluate. 8 ! 7 ! 9 ! 5 ! Simplify your answer a s much a s possible.

The primary purpose of the liquidity ratios is to determine which of the following: the extent to which borrowed funds are used to finance assets the ability of the firm to meet short-term...

The volume of a spherical snowball melts at the rate of 2n cm /hr. It melts symmetrically in a perfect physical universe such that the snowball is always a sphere, How fast is the radius of the...

Dog Corporation acquires all of Cat, Inc. for $400,000 cash. On that date, Cat has net assets with fair value of $350,000 but a book value and tax basis of $325,000. The tax rate is 30 percent. Prior...

If a firm has substantial capital or financing leases disclosed in the notes but not capitalized in the financial statements, then: a. the times interest earned ratio will be overstated, based upon...

What is the difference between artifacts, sociofacts and mentifacts? Give examples of each.

I need the answer Content attribution QUESTION 3 . 1 POINT Tariffs create a(n) pressure on domestic prices. Select the correct answer below: upward O downward O constant negligible amount of Previous...

Discuss why cash is inherently a high-risk item on the balance sheet but not as high a risk to the actual audit program itself. Consider these questions: When is cash a high risk, and when is it a...

Can someone help me (with solutions in the problem) Activity 1 - Multiple Choice: Write the letter and corresponding word/ phrase/ sentence of the correct answer. 1. Management assertions are: a....

ACC555 FINAL EXAM NAME _______________________________ 1. The 10,000 accounts receivable of DEF Company have a total book value of $120,000. A CPA has selected and audited a sample of 100 accounts...

18-31 (Substantive tests for cash balances) You are the in-charge accountant examining the financial statements of the Gutzler Company for the year ended December 31, 20X0. During late October 20X0,...

Bank Reconciliation The bank reconciliation made by Sandler Company, a sole proprietorship, on March 31 showed: Deposit in transit of $1.100 Outstanding checks no.797 $450 0,304 The reconciled cash...

Problem 6-18A e. Stone Manufacturing has good internal control over its manufacturing materials inventory. However, office supplies are kept on open shelves in the employee break room. The office...