13. An auditor prepares a four-column proof fof cash for the month of June. This
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Question
13. An auditor prepares a four-column proof fof cash for the month of June. This four-column proof of cash is not useful for detecting (Hint: Think of the recording format) a. all outstanding checks in May which had cleared the bank in June. b. all payroll checks erroncously recorded in the General Disbursements Journal in June. e, all theft of cash in June which had not been recorded in the cash register d. all rent collected by the bank in June which had not been recorded in the General Cash Receipts Journal.Explanation / Answer
A four column proof of cash is used to reconcile the bank statements with cash register. And it highlights the area in which there are discrepancies and it also discovered the NSF check. Any fees directly earned earned by the bank is also known, Outstanding checks of the last month cleared in the current month is also discovered with this.Any error in recording payroll also discovered with this.
Theft of cash means cash is stolen before recorded in cash register is not know by any method of accounting because the recording of that transaction is not done at anywhere so unable to trace the theft of cash.
So, Answer = Option C
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