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com

Chapter 23

Audit of Cash Balances

Review Questions

23-1 The appropriate tests for the ending balance in the cash accounts depend
heavily on the initial assessment of control risk, tests of controls, and substantive
tests of transactions for cash receipts. The company's controls over cash receipts
assist the auditor in determining that cash received is promptly deposited, that
receipts recorded are proper, that customer accounts are promptly updated, and
that the cash cutoff at year-end is proper. If the results of the evaluation of internal
control, the tests of controls, and the substantive tests of transactions are adequate,
it is appropriate to reduce the tests of details of balances for cash, especially for the
detailed tests of bank reconciliations. On the other hand, if the tests indicate that the
client's controls are deficient, extensive year-end testing may be necessary.

23-2 The appropriate tests for the ending balance in the cash accounts depend
heavily on the initial assessment of control risk, tests of controls, and substantive
tests of transactions for cash disbursements. The company's controls over cash
disbursements assist the auditor in determining that cash disbursed is for approved
company purposes, that cash disbursements are promptly recorded in the proper
amount, and that cash cutoff at year-end is proper. If the results of the evaluation of
internal control, the tests of controls, and the substantive tests of transactions are
adequate, it is appropriate to reduce the tests of details of balances for cash,
especially for the detailed tests of bank reconciliations. On the other hand, if the
tests indicate that the client's controls are inadequate, extensive year-end testing
may be necessary.
An example in which the conclusions reached about the controls in cash
disbursements would affect the tests of cash balances would be:

If controls over the issuance of blank checks, the review of payees, amounts,
and supporting documentation, the signing of checks, and the reconciliation
of bank statements and vendors' statements are adequate, the auditor's
review of outstanding checks on the year-end bank reconciliation may be
greatly reduced. The year-end outstanding checks can be verified by
testing a sample of checks returned with the cutoff bank statement rather
than tracing all paid outstanding checks and the final monthly checks in the
cash disbursements journal to the last month's cleared checks and the
bank reconciliation.

23-1
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23-3 The monthly reconciliation of bank accounts by an independent person is

an important internal control over cash balances because it provides an opportunity
for an internal verification of the cash receipts and cash disbursements transactions,
investigation of reconciling items on the bank reconciliation, and the verification of
the ending cash balance. Anyone responsible for the following duties would not be
considered independent for the purposes of preparing monthly bank reconciliations:
Issuance of checks
Receipt and deposit of cash
Other handling of cash
Record keeping

23-4 The controller's approach is to reconcile until the balance agrees. The
shortcoming of this approach is that it does not include a review of the items that
flow through the account and it opens the door for the processing of improper items.
Such items as checks payable to improper parties, reissuance of outstanding checks
to improper parties, and kiting of funds would not be discovered with the controller's
approach. The controller's procedures should include the following:
a. Examination of all checks clearing with the statement (including those
on the previous month's outstanding check list) and comparison of
payee and amount to the cash disbursements journal.
b. Test of cash receipts to determine that they are deposited within a
reasonable amount of time.
c. Follow-up on old outstanding checks so that they can be recognized
as income after it is determined that they will not be cashed, and no
liability exists.

23-5 Bank confirmations differ from positive confirmations of accounts receivable

in that bank confirmations request several specific items of information, namely:
1. The balances in all bank accounts.
2. Restrictions on withdrawals.
3. The interest rate on interest-bearing accounts.
4. Information on liabilities to the bank for notes, mortgages, or other debt.
Positive confirmations of accounts receivable request the customer to
confirm an account balance stated on the confirmation form or designate a different
amount with an explanation. The auditor anticipates few exceptions to accounts
receivable confirmations, whereas with bank confirmations he expects differences
between the balance per bank and balance per the books that the client must
reconcile. Bank confirmations should be requested for all bank accounts, but
positive confirmations of accounts receivable are normally requested only for a
sample of accounts. If bank confirmations are not returned, they must be pursued
until the auditor is satisfied as to what the requested information is. If positive
confirmations of accounts receivable are not returned, second and maybe third
requests may be made, but thereafter, follow-ups are not likely to be pursued.
Alternative procedures, such as examination of subsequent payments or other
support of customers' accounts may then be used.

23-2
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23-5 (continued)

The reason why more importance is placed on bank confirmations than

accounts receivable confirmations is that cash, being the most liquid of assets, must
be more closely controlled than accounts receivable. In addition, other information
such as liabilities to the bank must be known for purposes of the financial
statements. Finally, there are usually only a few bank accounts and most bank
accounts have a large volume of transactions during the year.

23-6 This is a good auditing procedure that attempts to discover if any accounts
that should have been closed are still being used, such as by a company employee
to deposit customer remittances. The procedure may also discover unrecorded and
contingent liabilities.

23-7 A cutoff bank statement is a partial period bank statement with the related
cancelled checks, duplicate deposit slips, and other documents included in bank
statements, which is mailed by the bank directly to the auditor. The purpose of the
cutoff bank statement is to verify the reconciling items on the client's year-end
reconciliation with evidence that is inaccessible to the client.

23-8 Auditors are usually less concerned about the client's cash receipts cutoff
than the cutoff for sales, because the cutoff of cash receipts affects only cash and
accounts receivable and not the income statement, whereas a misstatement in the
cutoff of sales affects accounts receivable and the income statement.
For the purpose of detecting a cash receipt cutoff misstatement, there are
two useful audit procedures. The first is to trace the deposits in transit to the cutoff
bank statement to determine the date they were deposited in the bank account.
Because the recorded cash will have to be included as deposits in transit on the
bank reconciliation, the auditor can test for the number of days it took for the in-
transit items to be deposited. If there is more than a two or three day delay between
the balance sheet date and the subsequent deposit of all deposits in transit, there is
an indication of a cutoff misstatement. The second audit procedure requires being
on the premises at the balance sheet date and counting all cash and checks on
hand and recording the amount in the audit files. When the bank reconciliation is
tested, the auditor can then check whether the deposits in transit equal the amount
recorded.

23-9 An imprest bank account for a branch operation is one in which a fixed
balance is maintained. After authorized branch personnel use the funds for proper
disbursements, they make an accounting to the home office. After the expenditures
have been approved by the home office, a reimbursement is made to the branch
account from the home office's general account for the total of the cash
disbursements. The purpose of using this type of account is to provide controls over
cash receipts and cash disbursements by preventing the branch operators from
disbursing their cash receipts directly, and by providing review and approval of cash
disbursements before more cash is made available.

23-3
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23-10 The purpose of the four-column proof of cash is to verify:

Whether all recorded cash receipts were deposited.

Whether all deposits in the bank were recorded in the accounting
records.
Whether all recorded cash disbursements were paid by the bank.
Whether all amounts that were paid by the bank were recorded as
cash disbursements in the accounting records.

Two types of misstatements that the four-column proof of cash is meant to

uncover are:

Cash received that was not recorded in the cash receipts journal
Checks that cleared the bank but have not been recorded in the cash
disbursements journal

23-11 Whenever a cutoff bank statement is not received directly from the bank,
the auditor may verify the bank statement for the month subsequent to year-end.
The audit procedures used for the verification are as follows:

1. Foot all of the cancelled checks, debit memos, deposits, and credit
memos.
2. Check to see that the bank statement balances when the totals in 1
are used.
3. Review the items included in 1 to make sure they were cancelled by
the bank in the proper period and do not include any erasures or
alterations.

The purpose of this verification is to test whether the client's employees have
omitted, added, or altered any of the documents accompanying the statement.

23-12 Lapping is a defalcation in which a cash shortage is concealed by delaying

the crediting of cash receipts to the proper accounts receivable. The first step in the
fraud is to withhold cash remitted by a customer from a bank deposit. A few days
later, because the customer must receive credit for the remittance, the first
customer's account is credited with an amount from a remittance made by a second
customer. The process requires the continuous shifting of shortages from account to
account and the crediting of subsequent receipts to the wrong accounts receivable.
Kiting is a procedure used to conceal cash shortages from employers and
auditors, to conceal bank overdrafts from the bank or banks affected, or to pad a
cash position. All kiting procedures are designed to take advantage of the "float"
period during which a check is in transit between banks.
A shortage in the cash in bank account may be concealed by depositing in
the bank a transfer check drawn on another bank. The transfer check, not recorded
as a deposit or a cash disbursement, brings the bank account into agreement with

23-4
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23-12 (continued)

the books of account. The check is recorded a few days later and the shortage
"reappears" unless the process is repeated. A similar effect may be obtained by
depositing unrecorded fictitious N.S.F. checks.
If a depositor desires to write a check for which he does not have funds on
deposit, he can deposit a transfer check large enough to cover the payment, even
though the transfer check itself creates an overdraft. The transfer process may be
repeated indefinitely or may be terminated by a deposit of sufficient funds to cover
the overdraft. Because the purpose of this procedure is to conceal an overdraft from
the bank, the transfer check may or may not be recorded on the books on the date
that it was drawn.
Kiting to pad a cash position typically occurs at the end of a fiscal period; a
check transferring funds from one bank to another is deposited and recorded on the
date drawn but is not recorded as a cash disbursement until the following period. In
this case, the credit on the books would probably be made to a revenue account and
the subsequent debit to an expense account.
The following audit procedures would be used to uncover lapping:

Confirm accounts receivable and give close attention to exceptions

made by customers about payment dates. The confirmation procedure
is better applied as a surprise at an interim date so that if a person is
engaged in lapping, he or she will not have been able to bring the
"lapped" accounts up to date. If the confirmations are always prepared
at year-end, the audit step may be anticipated by the person doing the
lapping and the shortage given a different form such as kiting of checks.
Make a surprise count of the cash and customers checks on hand.
The deposit of these funds should be made under the auditor's
control, and the details of the deposit should later be compared with
the cash receipts book and the accounts receivable records.
Compare the details of remittance lists (if prepared), stamped duplicate
deposit slips, and entries in the cash receipts book. Because deposit
slips are easily altered, some auditors prepare duplicate deposit slips
for deposits made a few days before and after the audit date and have
these slips authenticated by the bank. These authenticated duplicate
deposit slips are compared to remittance lists and to entries in the
cash book.
Compare the check vouchers received with the customers' checks
with stamped duplicate deposit slips, the entries in the cash book, and
postings to the accounts receivable records. If the client stamps the
voucher with the date it was received, the auditor should make careful
comparisons of the stamped dates to the dates recorded in the cash
receipts journal.

23-5
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23-12 (continued)

Kiting might be uncovered by the following audit procedures:

As a surprise count of cash and customers' checks on hand is made

as a test for lapping, determine that checks representing transfers of
funds are properly recorded on the books.
Prepare a schedule of the interbank transfers made for a few days
before and after the audit date. The schedule should show, for each
check, the date that the cash disbursement was recorded on the
books, and the dates of withdrawal and deposit shown on the bank
statements.
Obtain cutoff bank statements directly from the bank covering the
seven to ten day period after the balance sheet date. Examine the
checks returned with the cutoff statements and pay attention to dates
of the transactions stamped by the banks on the backs of the checks.
These stamped dates should not be earlier than the dates of the
checks or the dates of cash disbursements recorded on the books.
Protested (N.S.F.) checks should be investigated to determine they
are not fictitious checks deposited temporarily to cover a shortage.

23-13 Assuming a client with excellent internal controls uses an imprest payroll
bank account, the verification of the payroll bank reconciliation ordinarily takes less
time than the tests of the general bank account even though the number of payroll
disbursements exceeds those for the general account because an imprest payroll
account has no activity other than payroll disbursements and deposits made to
reestablish the standard minimum account balance. Furthermore, most employees
cash their checks quickly, so there usually are few outstanding checks, especially
older ones, and no other reconciling items. On the other hand, the general bank
account will include all regular activity plus bank charges, notes, other liabilities, etc.,
which must be reconciled and verified.

23-14 The verification of petty cash reimbursements consists of footing the petty
cash vouchers supporting the amounts of the reimbursements, accounting for a
sequence of petty cash vouchers, examining the petty cash vouchers for authorization
and cancellation, and examining the supporting documentation attached to the
vouchers for reasonableness. The balance in the fund is verified by a count of the
petty cash. Testing of petty cash transactions is more important than the ending
balance in the account, because even if the amount of the petty cash fund is small,
there is potential for a large number of improper transactions if the fund is frequently
reimbursed.

23-6
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23-15 There is a greater emphasis on the detection of fraud in tests of details of

cash balances than for other balance sheet accounts because the amount of cash
flowing into and out of the cash account is frequently larger than for any other
account in the financial statements. Furthermore, the susceptibility of cash to
misappropriation is greater than other types of assets because most other assets
must be converted to cash to make them usable.
This emphasis affects the auditor's evidence accumulation in auditing year-
end cash as in these examples:

Verifying whether cash transactions are properly recorded

Testing of bank reconciliations
Obtaining bank confirmations

23-16 The misstatements that are of the greatest concern to auditors in bank
reconciliations are intentional ones to cover up a cash shortage, usually resulting
from a defalcation. A fraudulent deposit in transit or an omitted outstanding check
will both cover up a cash shortage. Omitted deposits in transit or inclusion of a
nonexistent outstanding check are likely misstatements only when the bank balance,
after reconciling items are accounted for, is greater than the book balance, a highly
unlikely occurrence.

23-17 This questions deals with a situation where a companys bank received an
electronic deposit of cash from credit card agencies making payments on behalf of
customers purchasing products from the companys online Web site. The company
does not have the electronic deposit recorded in the general ledger. The companys
bank reconciliation should include an adjustment for this transaction, which would
increase the book balance of cash and decrease accounts receivable from credit
card agencies.

Multiple Choice Questions From CPA Examinations

23-18 a. (3) b. (2) c. (1)

23-19 a. (4) b. (2) c. (4)

23-7
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Discussion Questions and Problems

23-20

MOTIVATION INTERNAL CONTROL AUDIT PROCEDURE

1. To cover a shortage. Internal verification of Foot outstanding check list.
bank reconciliation.

2. To cover a cash Independent bank Obtain bank confirmation.

shortage or to reconciliation.
improve the current
ratio.

3. To cover a shortage. Internal verification of Trace all checks dated on

bank reconciliation, or before June 30 that
including accounting for cleared with the cutoff bank
all checks recorded in statement to the June 30
the cash disbursements outstanding check list.
journal as cleared or still
outstanding.

4. Same as 3. Same as 3. Verify the bank reconciliation

by tracing checks dated on or
before June 30 in the cash
disbursements journal to
checks clearing with the
June 30 bank statement.
Any checks not clearing
should be included on the
June 30 outstanding check
list.

5. Hold open books to Independent bank Trace deposits in transit to

improve cash reconciliation. cutoff bank statements to
position. determine deposit date.

6. Kiting-covering a Independent bank Trace all interbank transfers

defalcation or reconciliation. to accounting records.
padding a cash
position.

7. Original check was Independent bank Verify the bank reconciliation,

unauthorized and reconciliation that including cash disbursements
illegal. Outstanding includes accounting for for all material uncleared
check made the all cash disbursement outstanding checks.
bank reconcile. transactions.

23-8
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23-21 The objectives of each of the audit procedures are:

1. To ascertain all cash balances and liabilities to banks that might exist.
The verification includes amounts and descriptions.
2. To assure that the client is using the correct balance from the bank in
preparing its reconciliation.
3. To determine which checks on the outstanding check list have since
cleared and to uncover checks that should have been included on the
outstanding check list, but were not. These could represent a cover-up
of a cash shortage.
4. To create a list of outstanding checks for follow-up to determine why
they have not cleared and to investigate the possibility of a misstatement
of cash and accounts payable.
5. To assure that all loans, terms, and arrangements with the bank were
properly authorized by the board of directors and are disclosed in the
financial statements.
6. To reconcile the recording of cash receipts and cash disbursements
between the bank and the client's books and to prepare a bank
reconciliation at the same time. This may disclose existence, complete-
ness, accuracy, cutoff, or posting and summarization misstatements.
7. To determine if there is a cutoff misstatement in cash disbursements.
8. To make sure the cash receipts were recorded by the bank shortly
after the beginning of the new year and recorded in the current year's
cash receipts journal. A misstatement in either of these could indicate
the cover-up of a cash shortage or a cash receipts cutoff misstatement.

23-22 a. Bank reconciliation:

Balance per bank $ 1,522

Add:
Deposits in transit 2,000
Check erroneously charged
to Pittsburgh Supply 646
Less: outstanding checks (2,218)
Adjusted bank balance $ 1,950
Balance per books
before adjustments $10,103
Adjustments to books:
July bank service charge (107 )
Note payment
(6,000 principal, 400 interest) (6,400 )
NSF check (516 )
Unrecorded check (1,130 )
Balance per books
after adjustments $ 1,950

23-9
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23-22 (continued)

(1) 6/30 DIT 600

July deposits per books 26,874
July deposits per bank (25,474 )
7/31 DIT $ 2,000
(2) 6/30 O/S checks $ 2,578
July checks per books 23,171
July checks clear (25,307 )
Erroneous check charged 646
Unrecorded check $ 1130
7/31 O/S checks $ 2,218

b. Adjusting entry:
Miscellaneous expense $ 107
Interest expense 400
Note payable 6,000
Allowance for doubtful accounts 516
Purchases 1,130 *
Cash in bank $ 8,153
To record adjustments arising from
7/31/11 bank reconciliation.
* Will require reversal on August 1 because of recording in
cash disbursements journal.
23-23 a. In verifying the interbank transfers, the following audit procedures should
be performed:

1. List interbank transfers made a few days before and after the
balance sheet date (already done).
2. Trace these interbank transfers to the appropriate accounting
records, bank reconciliations, and bank records to verify proper
recording.

b. For December 2011

Cash in bank $16,000

Branch bank clearing account $16,000
Cash in bank 21,000
Branch bank clearing account 21,000
Cash in bank 22,000
Branch bank clearing account 22,000
Only the first entry is essential because the same entry is also
being made on the branch bank for the other two entries.

23-10
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23-23 (continued)

For January 2012

Eliminate corresponding entries already made for the above.

c. For December 2011

Home office clearing account $28,000
Cash in bank $28,000
Home office clearing account 21,000
Cash in bank 21,000
Home office clearing account 22,000
Cash in bank 22,000

For January 2012

Eliminate corresponding entries already made for the above.

d. and e.

HOME OFFICE BRANCH ACCOUNT

RECORDS RECORDS
17,000 No DIT* No OC**
28,000 No DIT No OC
16,000 No DIT No OC
10,000 No DIT OC
21,000 No DIT No OC
22,000 No DIT OC
39,000 No DIT No OC

* DIT = Deposit in transit

** OC = Outstanding check

23-11
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23-24

POSSIBLE MISSTATEMENTS DUE AUDIT PROCEDURE TO

TO ERRORS OR FRAUD PROVIDE EVIDENCE
1. The auditor suspects that a lapping scheme b. Compare the details of the
exists because an accounting department cash receipts journal entries
employee who has access to cash receipts with the details of the
also maintains the accounts receivable ledger corresponding daily deposit
and refuses to take any vacation or sick days. slips.
2. The auditor suspects that the entity is h. Prepare a bank transfer
inappropriately increasing the cash reported on schedule.
its balance sheet by drawing a check on one
account and not recording it as an outstanding
check on that account and simultaneously
recording it as a deposit in a second account.
3. The entitys cash receipts of the first few b. Compare the details of the
days of the subsequent year were properly cash receipts journal entries
deposited in its general operating account after with the details of the
the year-end. However, the auditor suspects corresponding daily deposit
that the entity recorded the cash receipts in its slips.
books during the last week of the year under
audit.
4. The auditor noticed a significant increase f. Examine invoices, receipts,
in the number of times that petty cash was and other documentation
reimbursed during the year and suspects that supporting reimbursement
the custodian is stealing from the petty cash of petty cash.
fund.
5. The auditor suspects that a kiting scheme e. Obtain the cutoff bank
exists because an accounting department statement and compare
employee who can issue and record checks the cleared checks to the
seems to be leading an unusually luxurious year-end reconciliation.
lifestyle.
6. During tests of the reconciliation of the payroll d. Agree gross amount on
bank account, the auditor notices that a check payroll checks to approved
to an employee is significantly larger than other hours and pay rates.
payroll checks.

7. The auditor suspects that the controller e. Obtain the cutoff bank
wrote several checks and recorded the cash statement and compare
disbursements just before year-end but did not the cleared checks to the
mail the checks until after the first week of the year-end reconciliation.
subsequent year.

23-12
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23-25 a.
CORRECTED RECONCILIATION
December 31, 2011
Balance per bank 12-31-11 $26,978.41
Add:
Deposits in transit 3,715.27
Less: Outstanding checks* (3,121.83)
Balance per bank - adjusted $27,571.85

Balance per books - before adjustments $27,253.85

Add: proceeds of note collected by bank 1,200.00
Less:
Dishonored check $450,00
Unrecorded bank service charge 35,00
Error in recording check 397.00 (882.00 )
Balance per books - adjusted $27,571.85
*List of checks totals $3,121.83 not $3,295.15.
b. Cash $1,200.00
Notes receivable $1,200.00
To record collection of a note
left for collection.
Accounts receivable 450.00
Cash 450.00
To charge dishonored check
to accounts receivable.
Miscellaneous expense 35.00
Cash 35.00
To charge December bank
service charge to expense.
Accounts payable 397.00
Cash 397.00
To charge to accounts payable
(or to receivables) the actual
amount of a check drawn which
was recorded for a lower amount.

23-13
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23-26 a.
Cash Disburse- Cash
9/30/11 Receipts ments 10/31/11
Balance per bank $6,915 $28,792 $27,431 $8,276
Deposits in transit
9/30/11 5,621 (5,621)
10/31/11 996 996
Outstanding checks
9/30/11 (1,811) (1,811)
10/31/11 2,615 (2,615)
Bank error check charged
to wrong account (1,144) 1,144
NSF checks (600) (1,335) 735
Balance per bank adjusted $10,725 $23,567 $25,756 $8,536
Balance per books unadjusted $10,725 $20,271 $25,160 $5,836
Adjustments to be made
Interest charged 596 (596)
Note proceed 3,296 3,296
Balance per books adjusted $10,725 $23,567 $25,756 $8,536

b. Adjusting journal entries:

Dr. Cash in bank $ 3,296
Cr. Notes receivable $2,900
Cr. Interest income 396
Dr. Interest expense 596
Cr. Cash in Bank 596
To record adjustments resulting
from Oct. 31, 2009 reconciliation
of bank account.

Internet Problem Solution: Check Clearing for the 21st Century Act

Internet Problem 23-1

a. A substitute check is a special paper copy of the front and back of an

original check, and is specially formatted so it can be processed as if it
were an original check. The front of a substitute check should state:
"This is a legal copy of your check. You can use it the same way you
would use the original check."

b. Because of Check 21 and other check-system improvements, checks

may be processed faster. The majority of consumers do not receive
their canceled checks with their account statements, but instead may
receive "pictures" (known as digital images), a list of paid checks, or a
combination of these items. Check 21 will have little or no effect on
these practices.

23-14
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Internet Problem 23-1 (continued)

Individuals who do receive canceled checks back in their

account statements, may notice some changes under Check 21. For
example, the bank may send a combination of original checks and
substitute checks. A canceled substitute check can be used as proof
of payment just like a canceled original check.
The account agreement with the bank governs whether the
customer receives canceled checks with their account statements. If
they currently receive canceled checks back with their statements,
they will continue to receive the checks unless the bank notifies the
customer it is changing the account agreement.

c. No. In general, the law does not require the bank to return original
checks. Many banks destroy original paper checks. Other banks may
store original checks for some period of time and then destroy them.
Check 21 ensures that customers have the same legal protections
when they receive a substitute check from the bank as when they
receive an original check.

(Note: Internet problems address current issues using Internet sources. Because
Internet sites are subject to change, Internet problems and solutions may change. Current
information on Internet problems is available at www.pearsonhighered.com/arens.)

23-15
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Chapter 24

Completing the Audit

Review Questions

24-1 There are four presentation and disclosure-related audit objectives:

PRESENTATION AND
DISCLOSURE-RELATED
AUDIT OBJECTIVES DESCRIPTION
Occurrence and rights and Account-related information as described in the
obligations footnotes exists and represents the rights and
obligations of the company.
Completeness All required disclosures are included in the
financial statement footnotes.
Accuracy and valuation Footnote disclosures are accurate and valued
correctly.
Classification and Account balances are appropriately classified
understandability and related financial statement disclosures are
understandable.

24-2 A financial statement disclosure checklist is an audit tool that summarizes

all disclosure requirements contained in accounting standards. Auditors use the
disclosure checklist to determine that all required disclosures are completely
presented and disclosed in the financial statements and accompanying footnotes.
This helps the auditor obtain sufficient appropriate evidence about the
completeness objective for the presentation and disclosure-related audit objective.

24-3 A contingent liability is a potential future obligation to an outside party for

an unknown amount resulting from activities that have already taken place.
Some examples would be:

Pending litigation
Income tax disputes
Product warranties
Notes receivable discounted
Guarantees of obligations of others
Unused balances of outstanding letters of credit

24-1