Two months before year-end the bookkeeper erroneously recorded the receipt of a long-term bank loan by a debit to cash and a credit to sales.Which of the following is the most effective procedure for detecting this type of misstatement?
A)Analyse bank confirmation information.
B)Analyse the notes payable journal.
C)Prepare a year-end bank transfer schedule.
D)Prepare a year-end bank reconciliation.

Question

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The Answer of Two months before year-end the bookkeeper erroneously recorded the receipt of a long-term bank loan by a debit to cash and a credit to sales.Which of the following is the most effective procedure for detecting this type of misstatement?
A)Analyse bank confirmation information.
B)Analyse the notes payable journal.
C)Prepare a year-end bank transfer schedule.
D)Prepare a year-end bank reconciliation.

Two Months Before Year-End the Bookkeeper Erroneously Recorded the Receipt