Question: You are testing the client's December 3 1 , 2 0 2 4 bank reconciliation by reviewing the bank cutoff statement received in January 2

You are testing the client's December

31, 2024

bank reconciliation by reviewing the bank cutoff statement received in January

2025

and have determined that the outstanding check amount on the bank reconciliation is not complete as it is missing the last day of checks issued and mailed to vendors on December

31, 2024 .

This error would likely result in the client's cash balance as of December

31, 2024

being:

Not impacted as items would be adjusted for in January

25

when paid.

Not impacted as outstanding checks should be included in the balance per the bank at December

31, 2024

Overstated.

Understated.

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