Bank reconciliation

What is the biggest risk of the bank and cash cycle (asset)

• Understate

• Overstate

Which one of the following financial statement assertions is not applicable to a balance?

• Existence

• Classification

• Accuracy

• Completeness

Substantive procedures consist of both analytical and detail substantive audit procedures?

• True

• False

Substantive procedures are performed to test controls implemented by management of the client?

• False

• True

Which one of the following verbs are not used for performing a substantive procedure?

• Inspect

• Enquire

• Observe

• Recalculate

What is the document that is obtained from the bank to confirm our bank balance?

Which two documents are compared to each other in a bank reconciliation?

• Bankstatement

• Trial balance

• Cashbook

• Financial statements

A bank reconciliation can be started either at the bank statement or the cashbook

• True

• False

A bank reconciliation obtains evidence for which assertion?

• Rights

• Presentation

• Accuracy, valuation and allocation

• Existence

What is considered when performing a bank reconciliation?

• Top

• Bottom

• Maths

• Logic

• Reconciling items