The audit and accounting concern addressed in a monthly proof of cash is with
A) adjusting account balances.
B) reconciling the amounts recorded in the books with the amounts included in the bank statement.
C) determining the month-end balance.
D) identifying cash transfers.

Question

Quizplus · Accepted Answer

A monthly proof of cash is used to reconcile the amounts recorded in the books with the amounts included in the bank statement. This helps to identify any discrepancies and potential errors in either the books or the bank statement. It ensures that the month-end balance is correct and accurate. By reconciling the amounts, cash transfers can also be identified and any necessary adjustments can be made to the account balances.

The Audit and Accounting Concern Addressed in a Monthly Proof