During the audit of Taurus Ltd for the year ended 30 September 20X6, you were assigned the responsibility for auditing the cash at bank figure in the statement of financial position. While checking the bank reconciliation you discovered that receipts from customers, listed as outstanding lodgements at the year end, were cleared through the bank on 20 October 20X6. Explain why this matter should be investigated further.

Answer rating: 100% (QA)

The discovery that receipts from customers initially listed as outstanding lodgements at the yearend were cleared through the bank on 20 October 20X6 ... View the full answer