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19.07.2022 - 12:50

Identify three tests that an auditor uses on the bank reconciliation and state the purpose of each test identified.

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Identify three tests that an auditor uses on the bank reconciliation and state the purpose of each test identified.

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Vera April 11, 2023 в 05:01

1. The first test is the comparison test which involves comparing the bank statement balance to the general ledger balance. The purpose of this test is to ensure that the balances in the bank account and the general ledger match and any differences are identified and resolved. 2. The second test is the vouching test. This test involves tracing transactions from the bank statement to the company's accounting records. The purpose of this test is to ensure that all cash transactions recorded in the company's records are accurately reflected in the bank account. 3. The third test is the completeness test. This test involves comparing the transactions recorded in the bank statement to the transactions recorded in the company's accounting records. The purpose of this test is to ensure that all transactions have been recorded in both the bank statement and the company's records, and any discrepancies are identified and investigated.

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