Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 6

An auditor should test bank transfers for the last part of the audit period and first part of the subsequent period to detect whether
a. The cash receipts journal was held open for a few days after year-end.
b. The last checks recorded before year-end were actually mailed by year-end.
c. Cash balances were overstated because cash was included in two accounts at year-end.
d. Any unusual payment to or receipts from related parties occurred.