Which of the following misstatements is most likely to be uncovered during an audit of a client's bank reconciliation?
A)Duplicate payment of a vendor's invoice
B)Billing a customer at a lower price than indicated by company policy
C)Failure to record a collection of a note receivable by the bank on the client's behalf
D)Payment to an employee for more than the hours actually worked

Question

Quizplus · Accepted Answer

The failure to record a collection of a note receivable by the bank on the client's behalf would be reflected on the bank statement but may not be recorded in the client's books. This misstatement would be identified when reconciling the bank statement with the client's records. The other options may require additional audit procedures or discovery during other audit tests.

Which of the Following Misstatements Is Most Likely to Be