Reference no: EM132959753

Your client, CL Ltd (CL), has provided you with a copy of the bank reconciliation for its main bank account at the year-end:

Bank Statement Balance at 31 December 2015 60,000

Add Deposits-in-Transit
Receipt Date           Receipt No               Amount in $
29 Dec                       565                    15,000
30 Dec                       566                    18,000
31 Dec                       567                  17,000               50,000

Less Outstanding Cheques
Cheque Date             Cheque Number           Amount in $

15 August                         365                       4,000
30 Sept                            458                     10,000
31 Oct                              558                    10,000
15 Dec                               658                    10,000            34,000
Adjusted Statement Balance   76,000
Bank Account Balance          73,000
Difference                           3,000

REQUIRED:

Problem (a) Describe all the audit work that should be carried out on the bank reconciliation. Provide audit procedures where appropriate.

Problem (b) Advise the team of 3 controls that it should expect to find in relation to petty cash.