A proof of cash is effective at identifying which of the following misstatements?

Question

Quizplus · Accepted Answer

A proof of cash is designed to reconcile the bank statement balance with the company's accounting records for cash. This comparison can help identify misstatements such as checks recorded in the books for an amount different from that on the check. However, it may not necessarily detect other types of misstatements such as checks written for incorrect amounts, checks issued to invalid vendors, or fraudulent checks, as these may require other audit procedures or investigative techniques to uncover.

A Proof of Cash Is Effective at Identifying Which of the Following