The reason for testing the client's bank reconciliation is to verify whether the client's recorded bank balance is the same amount as the actual cash in bank, except for deposits in transit, checks outstanding, and other reconciling items.The information needed to complete the tests of the reconciliation are provided by the:
A)client's records and ledgers for the year under audit.
B)cutoff bank statement.
C)client's records and ledgers for the subsequent year.
D)canceled checks for the year under audit.

Question

Quizplus · Accepted Answer

The cutoff bank statement provides independent verification of the bank transactions and balances around the reconciliation date, helping to confirm the accuracy of the client's bank reconciliation.

The Reason for Testing the Client's Bank Reconciliation Is to Verify