Question 1
A proof of cash is effective at identifying which of the following misstatements?
◦ checks written for an improper amount
◦ checks issued to invalid vendors
◦ fraudulent checks
◦ checks recorded in the books for an amount different from that on the check
Question 2
A proof of cash is
not an effective procedure for identifying which of the following types of misstatements?
◦ All recorded disbursements were paid by the bank.
◦ All recorded cash receipts were deposited.
◦ All amounts that were paid by the bank were recorded.
◦ Some checks were written for incorrect amounts.