EXCHANGE, CLEARING, OR SUSPENSE ACCOUNT

EXCHANGE, CLEARING, OR SUSPENSE ACCOUNT

  1. Obtain a schedule to determine the nature and purpose of the account if significant in amount,
  2. Test check debit and credit entries, being aware of the possibility that such account may be used as a means for diverting sales, padding expenses, and concealing other irregularities.

 

Reference: RAMO 1-2000

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