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dear tutor, I am super confused at the moment with regards to the real rationale for “inspecting cash book and bank statement”? Is it to confirm Existence or Completeness assertion? or both? or completeness in some while existence in rest?
sometimes its written that
“inspect cash book and bank statement to confirm completeness of payroll expenses/director remuneration” while the other times it is written that
“Inspect the cash book for loan repayments made: existence( accuracy & valuation too).”
I will answer your two posts of today but you MUST comply with the Forum Rules and with the emails from John Moffat yesterday.
We have discussed at length already on previous posts after-date cash book payments providing evidence of the completeness of y/e liabilities – which would include liabilities to employees including directors and liabilities to providers of finance – such as a bank..
Completeness is the main assertion here.
If you have a loan at the beginning of the year, inspecting repayments during the year will provide evidence of existence of the loan at the y/e and its amount (accuaracy and valuation – since allocation is not relevant),
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