During his examination of a January 19,2019 cutoff bank statement,an auditor noticed that the majority of cheques listed as outstanding at December 31,2018 had not cleared the bank.This would indicate

Question

Quizplus · Accepted Answer

This scenario suggests that the cash disbursements journal had been held open past December 31, 2018, allowing for transactions to be recorded in the new year as if they occurred in the previous year, hence the delay in the clearing of the cheques.

During His Examination of a January 19,2019 Cutoff Bank Statement,an