Which of the following would normally be discovered as part of the audit of the bank reconciliation?
A) failure to bill a customer
B) failure to include a deposit in transit on the bank reconciliation
C) duplicate payment of a vendor's invoice
D) payment to an employee for more hours than she or he worked

Question

Quizplus · Accepted Answer

The bank reconciliation process involves comparing the company's bank statement to its own internal records. One of the key reasons for performing a bank reconciliation is to ensure that all deposits in transit are included and all outstanding checks are recorded properly. Therefore, a failure to include a deposit in transit on the bank reconciliation would be discovered as part of the audit. The other options are potential issues that may be discovered through other audit procedures, but they are not directly related to the bank reconciliation process.

Which of the Following Would Normally Be Discovered as Part