Question: When the auditor fails to obtain a cutoff bank statement, it is common to verify the entire statement for the month subsequent to the balance

When the auditor fails to obtain a cutoff bank statement, it is common to verify the entire statement for the month subsequent to the balance sheet date.
How is this done and what is its purpose?

Step by Step Solution

★★★★★

3.49 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Whenever a cutoff bank statement is not received directly from the ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

185-B-A-A-A (319).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

What is a business rule, and what is its purpose in data modeling?

Why does an auditor obtain a cutoff bank statement when auditing a bank account? What information is examined on the canceled or substitute checks returned with the cutoff bank statement?

Describe the purpose of obtaining a cutoff bank statement or obtaining online access to the clients bank activity after year end.

Items a through /represent possible errors and fraud that you suspect may be present at Rex Company. The accompanying List of Auditing Procedures represents procedures that the auditor would consider...

1039. Adapted AICPA Simulation Items a through l represent possible errors and fraud that you suspect may be present at Rex Company. The accompanying List of Auditing Procedures represents procedures...

Possible Misstatements Due to Errors and Fraud Auditing Procedure(s) 1. The auditor suspects that a kiting scheme exists because an accounting department employee who can issue and record checks...

Items a through I represent possible errors and fraud that you suspect may be present at Rex Company. The accompanying List of Auditing Procedures represents procedures that the auditor would...

Items a thorough i represent possible errors and fraud that you suspect may be present at Rex Company. The accompanying List of Auditing Procedures represents procedures that the auditor would...

stimate the instantaneous rate of change of the function f(x) = x-4x+3 at x mange over successively smaller intervals. == elect the correct answer below: -13 0-12 0-11 O-10 O-9 5-7 -3 using the...

You invest $1,000 at the beginning of the year. How much will be accumulated in five years if you earn 10% interest compounded annually? Round your answer to the nearest dollar

1. Describe the current organizational structure for A-Parts and summarize its strength and weaknesses. What suggestions do you have for Mike to improve the situation at A-Parts? Do you feel that a...

A rational function f ( x ) and its first and second derivatives are given below: f ( x ) = 1 x 2 - 4 , f ' ( x ) = - 2 x ( x - 2 ) 2 ( x + 2 ) 2 , f ' ' ( x ) = 2 ( 3 x 2 + 4 ) ( x - 2 ) 3 ( x + 2 )...

If ABCD is a cyclic quadrilateral such that 3 tan A +4 = 0 and 13 cos B+ 5 = 0, then a quadratic equation whose roots are tan C and tan D, is (A) 15x2-56x + 48 = 0 (B) x2-18x + 1 = 0 (C) 12x2-17x-29...

Seattie Grace Corporation manufactures two modells of a medical device: Modet 101 and Model 102. Below is the current year production data for the company. Model 101 Direct material in units Model...

What are the key core competencies that MOCROSOFT possesses? (Please present no more than three) Please explain how they meet one or more of the four criteria that determine core competencies, and...

Using the data in the ideal gas tables, determine the equilibrium constant Kp for the reaction: HO = 1/2 H + OH at (a) 298 K and (b) 3000 K. Compare your results with the Kp values listed in Table...

What are the mantissa and exponent values if 6.75 is represented in 8-bit binary floating- point representation? a) Mantissa is 1011 and exponent is 101 b) Mantissa is 0011 and exponent is 100 c)...

The following data present the experience and salary structure of University of Michigan economists in 1983-1984. The variables are Calculate the regression of y on x. Present all the items mentioned...

What are general controls? Explain how they are similar to entity-level controls.

What are control activities? Explain their role in the financial reporting process.

What are the accounting information and communication controls? How are they distinct from business process controls?

The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is looking up. As a result, the cemetery project will provide a net cash inflow of...

Which of the following statements about Operating Leverage and Risk from the lecture are TRUE: Someone with relatively high fixed costs and low variable costs will have a high level of operating...

Write out the memory map for the following code, providing all values at the end of execution. How many total bytes does this code declare for variables? double testd; struct frog h: int testi;...