Which of the following misstatements will normally be discovered as part of the audit of the bank reconciliation?
A) Payment for raw materials that were not received
B) Payment to an employee for more hours than he or she worked
C) Payments on loans debited directly to the bank account but not entered in the client's records
D) All of the above

Question

Quizplus · Accepted Answer

Payments on loans debited directly to the bank account but not entered in the client's records would be discovered as part of the audit of the bank reconciliation as they would cause a difference between the bank balance and the company's records. The other misstatements listed may not be discovered as part of the bank reconciliation and would require other audit procedures to detect.

Which of the Following Misstatements Will Normally Be Discovered as Part