The ledger and journal entries are part of the posting process. Explain how an accountant would realize that an entry, or entries, are incorrect. Consider the role of the trial balance in your discussion and provide details on how you would locate the error(s)

The ledger and journal entries are part of the posting process. Explain how an accountant would realize that an entry, or entries, are incorrect. Consider the role of the trial balance in your discussion and provide details on how you would locate the error(s)

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 40CYBK

See similar textbooks

Related questions

Q: Discuss the errors which are not disclosed by a Trial Balance.

A: Solution The Trial Balance is not an accurate proof of the accuracy in ledger accounts. The total of…

Q: What kinds of errors would cause difference in the trial balance. Also listexamples that would not…

A: Generally, errors such as not posting properly, only posting half of the journal entry in the ledger…

Q: Which of the following procedures would maintain threats at an acceptable level and not impair…

A: In the realm of auditing and attestation services, maintaining an acceptable level of threats while…

Q: Explain why the ledger can still contain errors even through the trial balance is in balance. Give…

A: Trial balance: Trial balance is a summary of all the asset, liability, and equity accounts and their…

Q: The ruling method can be used if an error is discovered before or after an entry was posted. A line…

A: A correcting entry in accounting is used to fix mistakes made while recording financial transactions…

Q: Audit working papers are the property of the auditors, who may distort the papers, sell them, or…

A: An auditor is a person authorized to review and verify the accuracy of financial records and ensure…

Q: When an audit team does not receive a response on a positive accounts receivable confirmation,…

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: What is the most important quality for accounting information as identified in the conceptual…

A: The quality of accounting information is a crucial aspect of financial reporting. The conceptual…

Q: how would management know if the calculations were entered incorrectly in any kind of reporting?

A: Accounting errors are inadvertent errors in accounting entries. When an error or mistake is…

Q: Discuss various classes of error and state in each case the effect they might have on the trial…

A: There are four types of errors in preparation of trial balance, i.e., (i) Errors of Omission, (ii)…

Q: Which of the following controls would most effectively minimize the need to correct failures to…

A: An account is a formal record or arrangement maintained by a financial institution to track various…

Q: How do you find the error of trial balance. Please explain to me in a easiest way to remember

A: Following are the steps that can be used to find out the errors in a trial balance: Step 1: Total…

Q: Describe the accounting for correction of errors.

A: Accounting errors refer to the errors made while recording, classifying or summarizing accounting…

Q: how is the trial balance used to discover errors

A: A trial balance is an important accounting technique for ensuring the correctness of financial data…

Q: If an error is not detected in spite of all efforts and trial balance does not agree then what…

A: The trial balance is prepared by posting debit and credit balance from the ledger accounts.

Q: What should you do to ensure that errors in journalizing, posting or in the preparation of the trial…

A: Error in accounting refers to mistakes which could involve duplicating the same entry, transaction…

Q: Using the information given that is errors in the trial balance and AP schedule, can you assist in…

A: Accounts Payable Subsidiary Ledger An bookkeeping ledger that displays the transaction information…

Q: Which of the following statements is associated with analytical procedure test? a. It helps to…

A: Analytical procedures involve comparisons of recorded amounts, or ratios developed from recorded…

Q: In your role as an accountant, conduct a comprehensive evaluation of the relationship between the…

A: Journal: The journal is the initial entry point where all financial transactions are recorded…

Q: To gather audit evidence related to accounts receivable, the client should mail the confirmation…

A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…

Q: Which of the following is true of the correcting entry method? a.It cannot be used to correct a…

A: A correcting entry is a journal entry used to rectify the net effect of an error.

Q: Where the correct accounts are used but each item is shown on the wrong side of the account is an…

A: Errors in the account books are the unintentional mistakes that the person preparing the account…

Q: An auditor reviews aged accounts receivable to assess likelihood of collection to support…

A: The aged account receivable is reviewed by the auditor that assess the posibility in order to…

Q: The typical procedures performed to verify that the client has not omitted any amounts from the…

A: The answer is option (d.) [subsequent payments testing]

Q: What is a suspense account? Is it necessary that is suspense account will balance off after…

A: A suspense account is created when there is no certainty about debit or credit of a transaction and…

Q: An item or information is said to be material if misstatement of which can influence the ___ a.…

A: A material misstatements refers to an incorrect information depicted on the financial statements.…

Q: Current Attempt in Progress A partial statement of financial position of Cullumber Ltd. on December…

A: A fall in an asset's fair value usually signifies a drop in the asset's market value. The price at…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is a suspense account? Is it necessary that is suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?
In your role as an accountant, conduct a comprehensive evaluation of the relationship between the journal, ledger, and trial balance. Furthermore, elaborate on the methods you would employ to identify errors within the trial balance as well as the subsequent process for rectifying those errors. Use relevant examples to substantiate your arguments.
The ruling method can be used if an error is discovered before or after an entry was posted. A line is drawn through the incorrect account title or amount and the correct account title or amount written immediately above. The person making the correction also includes his or her initials with the correction. The correcting entry method is used if an error is discovered after an incorrectly journalized entry was posted. If the error consists of the wrong account(s), an entry is made to cancel out or reverse the incorrect account(s) and insert the correct account(s). The correcting entry must include an explanation. On May 10, a $170 payment for Advertising Expense was incorrectly journalized and posted as a debit to Travel Expense for $170 and a credit to cash for $170. Provide the correcting entry following the one-step method.
What are the steps taken by an accountant to locate the errors in the trial balance?
Which of the following is false? Select one: a. Recording transactions in separate special journals provides users with a more efficient system and access to specific information. b. Source documents provide evidence for journal entries, which are then posted to the general ledger accounts. c. The opening balances from the general ledger accounts are used to create a trial balance, the financial statements and other reports. d. All of the choices are true
What should be the necessary adjusting journal entry to correct the journalizing error?
Which of the following most likely would be included with the client’s confirmation letter, when an auditor decided to confirm customers’ account balances rather than individual invoices.? Select one: a. An auditor-prepared letter requesting the customer to supply missing and incorrect information directly to the auditor. b. A client-prepared letter reminding the customer that a nonresponse will cause a second request to be sent. c. A client-prepared statement of account showing the details of the customer’s account balance. d. An auditor-prepared letter explaining that a nonresponse may cause an inference that the account balance is correct.
The collection of accounts of Customer Alexander is recorded as a credit to the ledger of Customer Sean. What is the effect of the error in the total assets of the entity?
how is the trial balance used to discover errors
The following statements relate to nature of positive and negative confirmation requests. Which statement is true? * a. In positive confirmation, the customer is requested to reply directly to the client stating whether the balance appearing in the reply portion of the confirmation request is correct or not, and if not, to indicate details of difference. b. In a negative confirmation, the customer is asked to sign a confirmation form showing the account balance and return it in a stamped, addressed enveloped that is enclosed C. A positive confirmation request seeks a response from the debtor as to whether or not the balance is correct, and requests payment of the amount d. In negative confirmation, the debtor is requested to reply only if he disagrees with the indicated balance and to note details of the disagreement. e. None of the abovel
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
How do I check whether the general ledger dump is complete or not? What do I do? I just have a general ledger and the trial balance available.