Option #1: Proof of Cash

You must use the computer-based Electronic Audit Documentation in Excel on the textbook’s website to prepare the proof of cash required in this problem. Please refer to Lynda.com video tutorials for assistance working with Excel. Lynda.com can be found on CSU-Global Library database.

The auditors of Steffey Ltd. decided to study the cash receipts and disbursements for the month of July of the current year under audit. They obtained the bank reconciliations and the cash journals prepared by the company accountants, which revealed the following:

June 30: Bank balance, $355,001; deposits in transit, $86,899; outstanding checks, $42,690; general ledger cash balance, $399,210.
July 1: Cash receipts journal, $650,187; cash disbursements journal, $565,397.
July 31: Bank balance, $506,100; deposits in transit, $51,240; outstanding checks, $73,340; general ledger cash balance, $484,000. Bank statement record of deposits: $835,846; of payments: $684,747.

Required:

In Excel, prepare a four-column proof of cash (see Exhibit 6.13 for an example) covering the month of July of the current year. Identify problems, if any.