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.