Requirement 1: The balance of Cash is likely to differ from the bank statement balance. What…

Requirement 1:
The balance of Cash is likely to differ from the bank statement
balance. What two factors are likely to be responsible for the
difference? What is the purpose of preparing a bank
reconciliation?
Requirement 2:
Assume that Jane Smith, accounts payable clerk for ABC Inc.,
stole $48,350 by paying fictitious invoices for goods that were
never received. The clerk set up accounts in the names of the
fictitious companies and cashed the checks at a local bank.
Describe a control procedure that would have prevented or detected
the fraud.