The payroll bank account is an imprest account.

A. The payroll bank account is an imprest account. An imprest bank account: Should normally reconcile to zero adjusted balance Should have a minimum balance of $10,000,000 Can be used for any business cash deposit Should require at least three signatures of Brony's Bikes officials B. The purpose of the bank transfer schedule is to assure that: All transfers are deposited the same day Transfers are only recorded in one bank account at any time Transfers are not recorded transfers are never made to the the Imprest payroll account is in balance C.The $3,000,000 transfer from Bank Two to Dollar Bank-General could cause the auditor to suspect that Brony's Bikes has: A kiting scheme A lapping scheme Made an honest error More cash that was previously thought D. With respect to the auditor's requirements, the transfer from Bank Two to Dollar Bank-General in the amount of $2,000,000 requires: No further action beyond the comment in WP 1.C Reclassification to accounts payable The removal of the transfer from the WP 1.C To reverse the transfer because it is backwards