Question

The audit and accounting concern addressed in a monthly proof of cash is with:

A) adjusting account balances.
B) reconciling the amounts recorded in the books with the amounts included in the bank statement.
C) determining the month-end balance.
D) identifying cash transfers

Answer 1

The audit and accounting concern addressed in a monthly proof of cash is with reconciling the amounts recorded in the books with the amounts included in the bank statement. This process ensures that the company's cash balance is accurately reflected and that any discrepancies can be identified and resolved.

Step-by-step explanation:

The audit and accounting concern addressed in a monthly proof of cash is with reconciling the amounts recorded in the books with the amounts included in the bank statement. This process ensures that the company's cash balance is accurately reflected and that any discrepancies can be identified and resolved. By comparing the bank statement to the company's records, the auditors can verify that all cash transactions have been recorded correctly. They can also identify any cash transfers that may have occurred during the month.