The auditor should make inquiries if the deposit in transit on the year-end bank reconciliation is not shown on the bank cutoff statement.

Question

Quizplus · Accepted Answer

The auditor should inquire about a deposit in transit not appearing on the bank cutoff statement to ensure it was not omitted in error and to verify the accuracy of the year-end bank reconciliation. This is part of the audit procedures to confirm the completeness and accuracy of cash balances.

The Auditor Should Make Inquiries If the Deposit in Transit