By Preparing a Four-Column Bank Reconciliation ("Proof of Cash")for the Last

question 60

Multiple Choice

By preparing a four-column bank reconciliation ("proof of cash") for the last month of the year,an auditor will generally be able to detect:

• A)An unrecorded check written at the beginning of the month which was cashed during the period covered by the reconciliation.
• B)A cash sale which was not recorded on the books and was stolen by a bookkeeper.
• C)An embezzlement of unrecorded cash receipts on receivables before they had been deposited into the bank.
• D)A credit sale which has been recorded twice in the sales journal.

---

Definitions:

Settlement

An agreement reached by parties in a dispute, usually outside of court, to resolve their differences.

Federal Court System

The system of courts organized under the U.S. Constitution and laws of the federal government, addressing legal matters within its jurisdiction.

Districts

Divisions within a country, state, or city designated for administrative, electoral, or other purposes.

Affirmative Defense

A defense in which the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proved that the defendant committed the alleged acts.