1.

Inspection, Inquiry
2. Inspection, Observation, Inquiry, Confirmation, Recalculation
3. Inspection, Observation, Inquiry, Confirmation, Recalculation
4. Inspect bank credit memo – Auditors should always inspect the memo to ensure that
credit was noted and collected by the customer to balance back tothe bank statement
for reconciliation to avoid any misstatements.
5. Inspect bank credit memo 9.)Trace items on the bank reconciliation to the cutoff bank
statement – Tracing items back to the client’s list of outstanding checks is evidence that
all of the checks were written prior to the reconciliation date and should have been
included on the outstanding check, Therefore, the error for the erroneous charge by the
bank can be reconciled and traced by the bank statement
6. Compare to the September 30 general ledger – accurately balancing the Sept 30thdate
to the books can prevent misstatements of financial fraud.