Reconciliation and Verification

Worked examples (10)

• 1Distinguish reconciliation and verification (4 marks)
• 2Internal vs external documents (4 marks)
• 3Match the method to the check (5 marks)
• 4Why use external evidence (4 marks)
• 5Benefits of reconciliation (4 marks)
• 6Limitations of the procedures (4 marks)
• 7Segregation of duties (4 marks)
• 8Why use several methods (5 marks)
• 9Detecting a fraud (4 marks)
• 10Reasonable not absolute assurance (5 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 evaluation style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 evaluation style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Name the type of error (4 marks)
• 2Does it affect the trial balance? (5 marks)
• 3Correct balanced errors (5 marks)
• 4Correct a complete reversal (4 marks)
• 5Correct single-sided errors via suspense (5 marks)
• 6Prepare the suspense account (6 marks)
• 7Statement of corrected profit (6 marks)
• 8Effect of correcting errors (5 marks)
• 9Which corrections change profit? (5 marks)
• 10Benefits and limits of a trial balance (5 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 evaluation style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Debit or credit side? (5 marks)
• 2Prepare the control account (6 marks)
• 3Control account with a dishonoured cheque (6 marks)
• 4Control account with a contra (6 marks)
• 5Find the credit sales (6 marks)
• 6Control account with a credit balance (6 marks)
• 7Effect of an omitted item (5 marks)
• 8Using the control account to find an error (4 marks)
• 9Limitation of a control account (4 marks)
• 10Benefits of control accounts (4 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 evaluation style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Debit or credit side? (5 marks)
• 2Prepare the control account (6 marks)
• 3Control account with a contra (6 marks)
• 4Control account with supplier interest (6 marks)
• 5Find the credit purchases (6 marks)
• 6Control account with a debit balance (6 marks)
• 7Effect of an error (5 marks)
• 8Localising a purchases ledger error (4 marks)
• 9Limitation of the control account (4 marks)
• 10Both control accounts together (5 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 evaluation style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Cash book update or reconciliation? (5 marks)
• 2Update the cash book (5 marks)
• 3Prepare the reconciliation statement (5 marks)
• 4Full reconciliation (6 marks)
• 5Overdraft reconciliation (6 marks)
• 6Reconciliation with a cash-book error (6 marks)
• 7Work back to the cash book balance (5 marks)
• 8Which balance for the SOFP? (4 marks)
• 9Benefits of bank reconciliation (4 marks)
• 10Detecting fraud via reconciliation (5 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 evaluation style
• ✓Model answer — 9706 Paper 2 style

Worked examples (10)

• 1Control account or schedule? (5 marks)
• 2Amend the control account (6 marks)
• 3Schedule of corrected balances (6 marks)
• 4Prove the two agree (6 marks)
• 5Full reconciliation, both records (7 marks)
• 6An error affecting both records (5 marks)
• 7An error affecting neither total (4 marks)
• 8Reconcile a purchases ledger (6 marks)
• 9Which figure for the SOFP? (4 marks)
• 10Limitations of the reconciliation (5 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 2/3 style
• ✓Model answer — 9706 Paper 3 evaluation style
• ✓Model answer — 9706 Paper 2 style
• ✓Model answer — 9706 Paper 2/3 style