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Your firm is the auditor of Thai Textiles Ltd. and you are auditing the financial statements for the year ended June 30, 2020. The compa sales of $2.5 million and a before-tax profit of $150,000. The company has supplied you with the following bank reconciliation at year er have entered the "date cleared" on the bank statement (the date on which the cheques and deposits appeared on July's bank statemen Required a List the matters that cause you concern on the client's bank reconciliation. Describe the investigations that you will carry out on the items. b Explain what adjustments to the financial statements would be required from part (a). Source: Adapted from ACCA Audit Framework, Paper 6Y, December 1997. $ July 4 Balance Per Bank Statement at June 30, 2020 (9,865) Add: Deposits not Credited CJ date Type Date cleared June 30 ARL 11,364 June 24 CS July 4 653 June 27 CS July 5 235 June 28 CS July 6 315 June 29 CS July 7 426 June 30 CS July 8 June 30 CS July 11 362 14,069 714 $ July 4 Less: Uncleared Cheques CJ date Cheque no. Type Date cleared June 29 2163 CP 1,216 June 30 2164 APL July 18 10,312 June 30 2165 APL July 19 11,264 June 30 2166 APL July 18 9,732 June 30 2167 APL July 20 15,311 June 30 2168 APL July 21 8,671 June 30 2169 APL July 19 12,869 June 30 2170 APL July 21 9,342 June 30 2171 July 4 964 (79,681) Balance per cash journal at June 30, 2020 (75,477) Notes "CJ date" is the date on which the transaction was entered into the cash journal. Type of transaction: ARL (accounts receivable receipt); CS (receipt from cash sales); APL (accounts payable payment); CP (cheque payment [for other expenses]). All cheques for accounts payable payments are written out at the end of the month CP

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