Verifying the bank reconciliations


Response to the following problem:

Explain why, in verifying bank reconciliations, most auditors emphasize the possibility of a nonexistent deposit in transit being included in the reconciliation and an outstanding check being omitted rather than the omission of a deposit in transit and the inclusion of a nonexistent outstanding check.

Support your answer using a minimum of two professional or academic sources.

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Auditing: Verifying the bank reconciliations
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