Question

The auditing cash is an important audit function. provide four audit procedures that are mos often applied when auditing a client's year end bank reconciliation.

Answer 1

Audit procedures that are most often applied when auditing a client's year end bank reconciliation.

1) Verifying Bank Balance (statement) with Cash balance (Jeneral Ledger ) and Reconciliation Statement.

2) Verify the Reasons of Difference resulted into Reconciliation and ensure that proper details are mentained . example Cheques yet not deposite must have been with the cashier etc

3) Marking Transaction of bank which have Correspondence Transaction in Jeneral Ledger. example bank Deposit etc

4) and Higlighting the transaction that are not Recorded to Verify the same with Bank reconciliation statement. Example Bank Interest etc.