An auditor discovers that the company's bookkeeper unintentionally made an mistake in calculating the amount of the quarterly sales.This is an example of
A)employee fraud.
B)an error.
C)misappropriation of assets.
D)a defalcation.

Question

Quizplus · Accepted Answer

An error is an unintentional mistake made while recording transactions or preparing financial statements, and it can be caused by bookkeeping mistakes, faulty calculations, or misunderstandings of accounting principles. In this case, the mistake made by the bookkeeper is an error, not fraud, misappropriation of assets, or a defalcation.

An Auditor Discovers That the Company's Bookkeeper Unintentionally Made an Mistake