In the course of examining the cutoff bank statement for a client,an auditor is puzzled to discover that none of the cheques listed as outstanding on the year-end bank reconciliation has cleared the bank.This could be an indication that the client ________.

Question

Quizplus · Accepted Answer

If none of the cheques listed as outstanding have cleared, it could indicate that the cheques were mailed to vendors after the year-end, meaning they were not yet presented to the bank for payment.

In the Course of Examining the Cutoff Bank Statement for a Client,an