An audit client erroneously recorded a large purchase twice.Which of the following tests of control would be most likely to detect this error in a timely and efficient manner?
A)Reconciling suppliers' monthly statements with subsidiary payable ledger accounts.
B)Footing the purchases journal.
C)Sending written quarterly confirmations to all suppliers.
D)Tracing totals from the purchases journal to the ledger accounts.

Question

Quizplus · Accepted Answer

Reconciling suppliers' monthly statements with subsidiary payable ledger accounts is the most effective control to detect duplicate recording of purchases. This process involves comparing the details of what the company has recorded as purchases with what the supplier has billed, which would highlight any discrepancies such as a purchase being recorded twice.

An Audit Client Erroneously Recorded a Large Purchase Twice