Assume that you are planning to test a client’s reconciliation. You could test by either inspecting documentation of the reconciliation or by re-performing the reconciliation. What factors would cause you to choose re-performance instead of inspection of documentation? Solution The main factors affecting my decision would be : (i) Miscellaneous entries appearing in the reconciliation without any explanation. (ii) Huge amounts being adjusted in debit and credit without any documentary evidence thereagainst. (iii) Adjustment of huge amounts in Suspense Account. (iv) Cheques issued but not presented for more than six months, without any reason for non- presentation. (v) Cheques deposited within a period of six months but not credited, leading to suspicion of fraud entries passed..