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- This topic has 5 replies, 2 voices, and was last updated 7 years ago by Ken Garrett.
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- August 30, 2017 at 10:32 pm #404492
Can these substantive procedures for bank balances be correct?
Compare year-end bank balances with monthly results of bank reconciliations to verify if they are as expected.
Cast the schedule of bank balances to ensure that it correctly adds up to the total in the statement of financial position.August 31, 2017 at 7:05 am #4045301 I don’t know what the first test accomplishes or even how it would be carried out.
2 The second test is fine.
August 31, 2017 at 12:26 pm #404642Test 1) is checking if the trend is consistent hence confirming completeness of the bank balances
August 31, 2017 at 4:07 pm #404676There is unlikely to be a trend in cash balances and they can fluctuate wildly from month to month depending in tax payments, dividends and capital expenditure.
August 31, 2017 at 10:57 pm #404752Could I suggest ”Use of audit software to cast the receivables ledger” as an audit procedure?
September 1, 2017 at 6:03 am #404777Yes.
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