Question: Question 1: ABC Inc. had weak internal control over its cash transactions. Facts about its cash position at November 30 were as follows: The cash

Question 1: ABC Inc. had weak internal control over its cash transactions. Facts about its cash position at November 30 were as follows: The cash account showed a balance of $18,901.62, which included un-deposited receipts. A credit of $100 on the bank's records did not appear on the records of the company. . . The balance per bank statement was $15,550. Outstanding cheques were O #62 = $116.25 O #183 = $150.00 O #284 = $253.25 #8621 = $190.71 #8623 = $206.80 #8632 = $145.28 The cashier Mandoc embezzled all undeposited receipts in excess of $3,794.41 and prepared the reconciliation in the table as follows: Balance, per general ledger, November 30 $18,901.62 ADD: Outstanding cheques #8621 $190.71 #8623 206.80 #8632 145.28 542.79 19,344.41 Less: Undeposited receipts 3,794.41 Balance per bank, November 30 15,550.00 Deduct: Unrecorded credit 100.00 True Cash Balance, November 30 $15,450.00 REQUIRED: 1. Explain the purpose of testing the client's bank reconciliation. 2. Prepare a supporting schedule showing how much Mandoc embezzled

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