M2 AUDIT WORKING PAPER

M2 Self-Assessment

Identify the deficiencies in the following audit working

paper:

KOBID 19 ENTERPRISES
Bank Reconciliation
12/31/2020

Balance per bank P5,774 *

Add deposit in transit 1,223 &
6,997
Deduct outstanding checks:

4455 P67 &

4477 180 &
4478 1,023 &
4479 33 &
1,303
Adjusted balance P5,594
=====
Balance per ledger P6,300
Adjustment to correct (706)
Adjusted balance as above P5,594
======
M2 Self-Assessment

ANSWER:

1. Initials of preparer and reviewer and dates of

preparation and review are missing.
2. Name of bank account being reconciled is omitted.
3. Subtraction error. Adjusted balance should
beP5,694
rather thanP5,594.
4. Audit adjustment ofP706 not explained.
5. Audit legends not explained.