1.

NOT YET INTERNALIZE THE AUDIT PROGRAM FOR CASH

2. Page 2/ audit procedures/ 1/ 4th bullets
a. Checks accommodated in petty cash should be deposited after the count to
establish their validity.
3. Page 6/ number 6 under item number 2
a. Can a note receivable be classified as cash equivalent when after the reporting
period it has 3 month maturity?
4. Page 6/number 5
a. Does it mean that if the problem is silent regarding the classification of
compensating balance, it is treated in default as informal agreement and
therefore is included as items in cash?
5. Page 6 and page 7/ number 5 page 6 and number 11 page 7
a. Number 5 it is included as cash while in number 11 the compensating balance is
not included as cash. What's their difference?
6. Page 8 (time deposit)
a. Why is it that when the problem is silent time deposit is considered as having a
three months or less period? Therefore, when the problem is silent time deposit is
included as cash.
7. Page 16
a. I am not clarified.
8. Page 22
a. Not clarified in number 5
9. Is cash on hand part of deposit in transit?
10. I want to know the situation that would give sense why certified check is excluded
from the outstanding checks.
11. Page 29 number 3
a. Di ba adjusted balance ang gipangita, why in the solution it calculated the
balance per books?
12. Page 33 number 3. 400, 000 or 40, 000? I guess there is an error on the part of the
book.
13. Page 42 number 1/NSF check redeposited on December/why subtracted?
a. Number 3 as well
14. Page 44 number 1
a. Why the answer is letter A? Di ba 27, 000?
15. Page 54 no. 5
16. Page 56 all numbers
17. Page 58 (5) is this amount already included in balance per books, 12/31/14
18. What is NSF check? Why is it included in the debit balance in the bank statement?
Hindi ba ma-overstated ang disbursement column in the bank statement if NSF
check means
 check that has been returned by the bank on which it was drawn because the checking
account balance was less than the amount of the check
19. What is your definition for deposit? Is deposit only pertains to checks and money
delivered by the company into the bank? Or it also include those cash or note
collected by the bank coming from the customer of the company?
a. The purpose of this question : to know the composition of the amount deposited
or to know the coverage of deposit.
20. Page 72
a. Bank reconciliation for June.
i. What is the treatment on this situation?
1. The debit memos on June 13 and June 30 represent customers' NSF
checks returned by the bank. The June 13 NSF check was
immediately redeposited without entry. The June 30 NSF check was
redeposited on July 1 without entry.
21. Page 75
a. What is the treatment of this item in the bank reconciliation?
i. The accountant records customer's dishonored checks as a reduction of cash
receipts. When the dishonored checks are redeposited they are recorded as
a regular cash receipt. Two NSF checks for
ii. P1, 800 and P 2, 200 were returned by the bank during December. Both
checks were redeposited and were recorded by the accountant.
b. Page 77/ 1595/ why not reflected in the proof of cash solution
c. Page 77/ 1599/ why 100 000 is deducted?
d. Page 76/ number 1562 and 1571 are included in the outstanding checks
beginning, why are they not included as deductions to 49, 400 outstanding
checks? They are cancelled right? So why are they not included?
e. Not clarified with 1-25
22. Page 88/comment
a. NSF check of 20, 625--sabi doon: redeposited in the same month. No entries
made to take up the return and redeposit.
i. If this is redeposited in the same month, why is there a NSF check reflected
on December 31, 2014?
23. Page 94/no.11
a. Why 780 is deducted from total book receipts and book disbursements? Di ba
na record na ni?
i. The situation is Rodelio Co. Issued a stop payment order to the bank in
December. This pertains to a check written in December which was not
received by the payee. A new check was written and recorded in the
Check Register in December. The old check was written off by a journal
entry also in December.
24. Page 97/ what is your understanding about NSF check? What is its treatment in the
proof of cash?
a. NSF check returned by bank, not recorded in the company November 4300
December 8240
i. Is NSF check can be from the drawer or from the customer of the drawer
deposited but then returned by the bank because of its insufficiency?
ii. Consider this situation as well on page 100. it said
1. A check for 100, 000 had been cashed by the bookkeeper shortly
before his departure. Although the signature on the check had been
obviously forged, it was paid by the bank and returned with other
cancelled check.
25. Page 100/ is it the liability of the bank if they cashed the obviously forged signature
check?
a. Refer to the solution on page 102 no. 5