On January 31, 2021 you have received the company’s fiscal year-end bank reconciliation as at Dec 31, 2020.

You are required to perform an audit on the bank reconciliation (see tab “Q 3A – Bank Reconciliation” for bank reconciliation).

For the identified reconciling items (identified with a letter reference) state (on tab Q 3B – Answer Template).

1. the audit procedure you would perform.
2. the purpose of the audit procedure…why are you performing the procedure? (1 point each)

   	Balance per bank (as at Dec 31, 2020)					$    130,262.47	(A)
   	Add: Outstanding Deposits:
   			Deposit Date per Books	Deposit Date per Bank
   		ABC Company	30-Dec-20	02-Jan-21	2,100.00
   		XYZ Company	31-Dec-20	04-Jan-21	6,505.35	8,605.35	(B)
   						138,867.82
   	Deduct: Outstanding Cheques
   		Ck #	Cheque Issued Date	Date Cleared Bank
   		1032	28-Dec-20	02-Jan-21	32.57
   		1053	29-Dec-20	05-Jan-21	1,000.00
   		1123	30-Dec-20	07-Jan-21	287.16
   		1131	31-Dec-20	10-Jan-21	36.56
   		1132	31-Dec-20	31-Jan-21	2,800.35	4,156.64	(C)
   						134,711.18
   	Add: NSF Cheque - Frown Ltd.					300.00	(E)
   	Add: Bank Service Charges for December 2020					225.00	(F)
   	Balance per Books - (as at Dec 31, 2020)					$    135,236.18	(G)

On January 31, 2021 you have received the company’s fiscal year-end bank reconciliation as at Dec 31, 2020.

You are required to perform an audit on the bank reconciliation (see tab “Q 3A – Bank Reconciliation” for bank reconciliation).

For the identified reconciling items (identified with a letter reference) state (on tab Q 3B – Answer Template).

1) the audit procedure you would perform (1 point each) and

2) the purpose of the audit procedure…why are you performing the procedure? (1 point each)

Answer rating: 100% (QA)

Below Audit Procedure would be performed by us The fundamental opening is to start with a triple check comparing the balance on the three documents and confirming that its correct If a reconciliation ... View the full answer