Question 2 Bags-A-Go

Part A] 13 Marks: Bags-A-Go December 31, 2018 Bank Reconciliation and Supporting Schedules Bank reconciliation Dec Balance per bank Add: 20,024.00 Deposits in transit Check erroneously charged to Bags-A-Go 3,444.00 405.00 23,873.00 (5.172.00) 18,701.00 Less: outstanding cheques Adjusted bank balance Balance per books before adjustments 21,856.00 Adjustments to books: December bank service charge (30.00) (2,500.00) Note payment NSF cheque Unrecorded cheque Balance per books after adjustments (125.00) (500.00) 18,701.00 Supporting Documentation Deposits in transit, Nov 30 Dec deposits per books Dec deposits per bank Deposits in transit, Dec 31 1,300.00 32,156.00 (30,012.00) 3.444.00 Outstanding checks Nov 30 Dec cheques per books Dec cheques clear Erroncous cheque charged Unrecorded cheque Outstanding cheques Dec 31 3,245.00 18,478.00 (17,456.00) 405.00 500.00 5.172.00 You have recently been hired as an intermediate auditor with the prestigious group of auditors in the AaronM firm of auditors. They have received the above bank reconciliation with supporting schedules from their client Bags-A-Go. You are required to audit the cash and bank section of the audit file. estion 2...cont'd Required 1. Determine the appropriate audit procedures to be used to verify the following items of the bank reconciliation: (12 marks) a. Deposits in transit b. Cheques erroneously charged to client c. Outstanding cheques d. Bank service charge e. Note payables f. Not sufficient funds (NSF) cheques 2. What is the eash and bank balance that should appear in the financial statements as at December 31, 2017. (1 mark) Part B] 7 Marks Define the following audit terms commonly used in various audit procedures: (7 marks) 1. examine 2. scan 3. 4. compute foot 5. compare count 6. vouch 7