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 most likely be uncovered during an audit of a client's bank reconciliation. This is because the bank reconciliation is used to compare the client's records of cash transactions with the bank's records, and any discrepancies would be investigated during the audit. Other misstatements, such as duplicate payments, billing errors, or payroll fraud, may not be detected through the bank reconciliation and would require additional audit procedures to uncover.

Which of the Following Misstatements Is Most Likely to Be