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Why would an auditor request a cut off bank statement

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Reference no: EM133177547

Question - Testing for Fraud Case - Clear Vision Inc. is a very modern company that strives to be paperless in all its administrative functions. Clear Vision has arranged with its bank to receive all its banking transaction information online, through the bank's online banking website.

Clear Vision's auditor wants to get a cutoff bank statement as of January 20, 20X2, to complete the audit of the bank reconciliation.

Required -

a. Explain what a cutoff bank statement is and explain its purpose in auditing the bank reconciliation.

b. Why would an auditor request a cut off bank statement?

c. Describe one way that Clear Vision's auditor can obtain a cutoff bank statement if the bank cannot provide a paper copy.

Omitting to Record Sales Case - The auditor is considering confirming zero-balance accounts from the auditee's accounts receivable subledger to provide evidence concerning the completeness assertion for accounts receivables and sales.

 Required -

a. What are the advantages and limitations of this procedure?

b. How would the decision to use this procedure relate to the auditor's control assessment? Discuss the kinds of controls the auditee would be expected to have and the procedures the auditor could use to test them.

Reference no: EM133177547

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