As all disbursements are made by check, the returned checks themselves afford satisfactory proof of the expenditure of the various amounts shown. These checks should be signed by both the cashier and the treasurer, or some other officer who does not have the handling of the actual currency. The distribution of these amounts demands constant watchfulness on the part of the auditor, who should also see that each check or voucher check, as the case may be, is approved by the proper officers and supported by sufficient vouchers.

The bank pass-books should be balanced at the close of each month, and the balances compared with those of the cash book. It is a good practice for the bookkeeper invariably to show on the cash book itself each month the reconciliations with the banks, in some such form as the following:

Memo.:

1/31/17

Bank pass-book.........................................

$7,102.45

Cash book balance....................................

$6,832.10

Add checks not presented:

No. 2112

$110.00

2114

25.50

2116

104.25

2117

30.60

270.35

$7,102.45

The enforcement of this rule insures the accuracy of the balances carried forward and saves auditors considerable time in their work.

In some cases, such as special examinations and balance sheet audits, the auditor should obtain a letter from the bank verifying the pass-book balance.