Question #2 (15 points)

Required: Using the bank reconciliation that follows for a client companys cash account, identify the likely substantive procedure performed by the auditor associated with each of the tick marks identified below:

Balance per bank as of December 31, 2020 $36,751.82 -

Add: Deposits in transit

December 31, 2020 8,623.58 -

45,375.40

Less: Outstanding checks

# 504 $8,841.76

1491 1,983.60

1539 3,710.84

1540 7,242.44

1541 5,153.78

1542 12,000.00 38,932.42 -

Corrected balance as of December 31, 2020 $6,442.98

Unadjusted balance per books as of December 31, 2020 $1,100.18 -

Add: Note receivable collected directly by bank

($5500 face value plus $550 interest) 6,050.00 -

Less: Bank service charges $ 11.00

NSF check returned by bank 400.00

Error on the books (Check #1501) 296.20 707.20

Corrected balance as of December 31, 2020 $6,442.98

Explain the most likely meaning of each of the TICKMARKS (As Used Above):

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