QUESTION 5 (25MARKS)You are in charge of the audit of “cash and bank” at...QUESTION...

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Accounting

QUESTION 5

You are in charge of the audit of “cash and bank” at Beachbreak(Pty) Ltd for the financial year – end February 2018. During theinterim audit conducted during late December 2017, you had auditedthe bank reconciliation at 30 November and found it to be correct.During March, as part of your normal year – end procedures, you arepreparing to audit the bank reconciliation prepared by Otis Reddingand presented below.

Page 17 of 17

Bank reconciliation at 29 February 2018 – Beachbreak (Pty)Ltd

Balance as percashbook $127 261.30 Add: outstanding cheques 49378 3 October2017 4 447.35 52133 10 December 2017 15 210.6552876 18 February 2018 9 316.00 53192 22 February2018 943.89 53193 22 February2018 47 209.11 77126.00 204387.30 Add: direct deposit: Note1 18649.30 223036 60 Less: bank charges and fees for February2018 (163.00)Balance as per Bank statement 28 February 2018 222873.60

Note 1: This represents a deposit credited in error by the bank, toBeachbreak (Pty ) Ltd’s account on the 17 February 2018.

YOU ARE REQUIRED TO describe the audit procedures you would conducton the bank reconciliation of Beachbreak (Pty) Ltd at 28 February2018.

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4.2 Ratings (776 Votes)

Bank Reconciliation is a very necessary activity for any business organisation It is performed by the person who looks after the accounts of the company It is basically matching your bank balance as per the books of accounts with the bank statement It is very much required that the audit of the bank reconcilaition should be done on monthly basis The procedures See Answer

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In: AccountingQUESTION 5 (25MARKS)You are in charge of the audit of “cash and bank” at...QUESTION 5 You are in charge of the audit of “cash and bank” at Beachbreak(Pty) Ltd for the financial year – end February 2018. During theinterim audit conducted during late December 2017, you had auditedthe bank reconciliation at 30 November and found it to be correct.During March, as part of your normal year – end procedures, you arepreparing to audit the bank reconciliation prepared by Otis Reddingand presented below.Page 17 of 17Bank reconciliation at 29 February 2018 – Beachbreak (Pty)LtdBalance as percashbook $127 261.30 Add: outstanding cheques 49378 3 October2017 4 447.35 52133 10 December 2017 15 210.6552876 18 February 2018 9 316.00 53192 22 February2018 943.89 53193 22 February2018 47 209.11 77126.00 204387.30 Add: direct deposit: Note1 18649.30 223036 60 Less: bank charges and fees for February2018 (163.00)Balance as per Bank statement 28 February 2018 222873.60Note 1: This represents a deposit credited in error by the bank, toBeachbreak (Pty ) Ltd’s account on the 17 February 2018.YOU ARE REQUIRED TO describe the audit procedures you would conducton the bank reconciliation of Beachbreak (Pty) Ltd at 28 February2018.