3rd On-Line Quiz - Substantive Test For Cash
3rd On-Line Quiz - Substantive Test For Cash
3rd On-Line Quiz - Substantive Test For Cash
Problem 1
You are conducting an audit of the Arena Company for the year ended
December 31, 2015. The internal control procedures surrounding cash
transactions were not adequate. Ester Santos, the bookkeeper-cashier,
handles cash receipts, maintains accounting records, and prepares the
monthly reconciliations of the book account
The bookkeeper-cashier prepared the following reconciliation at the end
of the year:
Balance per bank statement
P350,000
Add: Deposit in transit
Note collected by bank
190,250
Balance
Less: outstanding checks
246,750
Balance per general ledger
P293,500
P175,250
15,000
P540,250
At December 31, 2015, the bank statement and the general ledger
showed balances of P350,000 and P293,500, respectively
b.
The cut-off bank statement showed a bank charged on January 2,
2016 for P30,000 representing a correction of an erroneous bank credit
c.
Included in the list of the outstanding checks were the following:
Questions:
1. The unaccounted cash receipt is