By preparing a four-column bank reconciliation ("proof of cash")for the last month of the year,an auditor will generally be able to detect:

Question

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An unrecorded check written at the beginning of the month which was cashed during the period covered by the reconciliation will not appear on the bank statement but will be recorded in the books. This will result in a difference between the book balance and the bank balance, which will be detected by the bank reconciliation.

By Preparing a Four-Column Bank Reconciliation ("Proof of Cash")for the Last