An unrecorded check issued during the last week of the year would most likely be discovered by the auditor when the:
A)check register for the last month is reviewed.
B)cutoff bank statement is reconciled.
C)bank confirmation is reviewed.
D)search for unrecorded liabilities is performed.

Question

Quizplus · Accepted Answer

The cutoff bank statement is reconciled after the end of the accounting period to ensure that all transactions are recorded in the correct period. Any unrecorded checks would be detected during the reconciliation process. Therefore, the auditor would most likely discover the unrecorded check when the cutoff bank statement is reconciled.

An Unrecorded Check Issued During the Last Week of the Year