Question

Auditing Assignment Three Chapter Ten This assignment consists of one question with two parts listed below. Answer the questions and submit to the drop box on the assigned date. Your paper should be double spaced and at minimum two pages long. You may use any format for the answer, however, when appropriate, the Conclusion, Rule, Application, Conclusion format is preferable for clarity and better understanding.

Question

Bank confirmations There are two parts in a standard bank confirmation. Discuss the purposes and what would be requested by each part and to whom it would be sent.

Answer 1

Two parts in standard bank confirmation

First part seeks informationon client's account balances

Second part seeks information on any loans or collateral agreements the client may have with the bank

Purposes of Bank confirmation

a) Auditor usually sends a confirmation to each bank with which the client transacted business during the year.

b) Balance and other information on the confirmation is left black respondent (bank) file in the form.

c) Auditor Reconciles the information by the bank with client records.

The requested should be sent to bank manager.