An auditor discovers that the company's bookkeeper unintentionally made a 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 by an employee or bookkeeper while recording accounting transactions. It is not considered fraud or misappropriation of assets as there was no intent to deceive or steal. A defalcation is a type of fraud where an employee embezzles funds from the company.

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