TRUE OR FALSE

STATE THE CORRECT STATEMENT

______15. During the preparation of a bank reconciliation, you notice a debit on the bank statement for $1,000. The description lists it as a miscellaneous charge. You complete the bank reconciliation and the bank and book balances agree, so you accept this audit evidence because of the completeness of the cash account.

______16. During the audit of a company, you decide to only spend a limited amount of time reviewing the petty cash box since a balance of only $250.00 is supposed to be in the box at any one time. When you inspect the transactions related to the petty cash box, you see four receipts handwritten by the bookkeeper each for $250. They are all receipts with the CEOs name on each receipt indicating a reimbursement for business lunches with potential customers. This is evidence of the accuracy of petty cash, and accept the balances for the audited report.