An unrecorded cheque issued during the last week of the year would most likely be discovered by the auditor when the ________.

Question

Quizplus · Accepted Answer

An unrecorded cheque issued during the last week of the year could be cleared by the bank in the next year. Therefore, reconciling the cutoff bank statement would help the auditor detect any unrecorded cheques issued during the last week of the year. The other options, such as reviewing the cheque register or bank confirmation, may not necessarily reveal any unrecorded cheque issued during the last week of the year. Searching for unrecorded liabilities is too broad and would not specifically target unrecorded cheques issued during a particular week.

An Unrecorded Cheque Issued During the Last Week of the Year