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1. just to confirm, inconsistencies in the other information is not shown in the auditor’s report right ? because this is a procedure where auditor confirm to ensure other information ( like charman’s report or operating & financial review ) are similar to the financial statement and auditor’s report of the client right ?
2. usually in the audit evidence, there are many instances where we compare the amount shown in cash book & bank statement to the amount paid to other party.
In this case, every time where it’s small amount to big amount (like acquiring business), always cash book & bank statement amount should be same generally (excluding those electronic charges, bank charges, outstanding checks, etc ) ?
Then this cash book is not like a typical petty cash book? , it’s a cash book which isnkept by the business to match between both cash book & bank statement ?
1 Wrong. Read Chapter 23 of the notes, particularly Paragraph 3.7.
2 The cash book is the same as the cash account and ismused to record cash in the bank account.. Entries in the cash book should agreemwith or be reconcila le to the bank account. The petty cash bookmkeeps track of how much cash there is in the petty cash ‘tin’ (container) and of how it has been spent.
2. then for the audit evidence, will i get 1 mark for writing either of it ? (shown below)
im not sure whether i have to write bank statement & cash book simultaneously in the answer sheet and i was afraid if i get only 0.5 mark if i write only bank statement
” copy of bank statement and cash book to agree the amount shown in bank statement / cash book against the $XXX paid to the other party
“copy of bank statement to agree the amount shown in the bank statement agains t the $XXX paid to the other party”
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