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  • This week we are studying bank reconciliations. Over the years this task has become less of a personal priority. Please explain changes which have occurred which have lead to less reconciliation and more reliability on the information available from your financial institution. How many of you continue to perform the task of reconciling your personal records to the bank records? For what reasons do you feel the task is necessary or unnecessary? 
  • As a result of the bank reconciliation, where does one determine the adjustments that must be journalized in the accounting records?
  • You receive your current month’s bank statement whether through the U.S. mail or online. In reviewing the statement, you notice a deposit listed for $400 that you did not make. I has been credited in error to your account. Discuss whether you have an ethical or legal obligation to inform the bank of the error. Which action do you take?
  • Explain the importance of internal control and provide examples of internal controls that your employer has in place. 
  • Define Internal Controls and describe its key components.

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