Daniyyah Damar Fitriyanti

13/344161/EK/19257
Auditing 2

23-20
Motivation Internal Control Audit Procedure
Cover shortage Internal verification of Foot outstanding check list
bank reconciliation
Cover cash shortage Independent bank Obtain bank confirmation
reconciliation
Cover shortage Internal verification of Trace all checks dated on
bank reconciliation or before June 30
Cover shortage Internal verification of Verify the bank
bank reconciliation reconciliation
by tracing checks dated
on or
before June 30 in the cash
disbursements journal to
checks clearing with the
June 30 bank statement.
Improve cash position Independent bank Trace deposits in transit to
reconciliation cutoff bank statements to
determine deposit date.
Padding cash position Independent bank Trace all interbank
reconciliation transfers
to accounting records.
Original check Independent bank Verify bank reconciliation
unauthorized reconciliation

23-22 a. Bank reconciliation:

Balance per bank $ 20,024

Add:
Deposits in transit 3,444
Check erroneously charged
to Cairo Wheat Supply 405
Less: outstanding checks (5,172)

Adjusted bank balance $ 18,701

Balance per books

before adjustments $21,856
Adjustments to books:
July bank service charge (30)
 Note payment (2,500)
NSF check (125)
Unrecorded check (500)
Balance per books
after adjustments $ 18,701

(1) 11/30 DIT 1300

July deposits per books 32,156
July deposits per bank (30,012)
12/31 DIT $ 3,444
(2) 11/30 O/S checks $ 3,245
July checks per books 18,478
July checks clear (17,456)
Erroneous check charged 405
Unrecorded check $ 500
7/31 O/S checks $ 5,172

b. Adjusting entry:

Miscellaneous expense $ 30
Note payable 2,500
Allowance for doubtful accounts 125
Purchases 500
Cash in bank $ 3,155