Leslie Made a Mathematical Mistake in Computing Her Tax Liability

question 47

Multiple Choice

Leslie made a mathematical mistake in computing her tax liability. Which audit program will likely catch Leslie's mistake?

• A)DIF system
• B)Mathematical correction
• C)Document perfection
• D)Information matching
• E)None of the choices are correct.

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Definitions:

Reconciling Items

Entries that adjust discrepancies between two financial records or accounts, ensuring consistency and accuracy.

Adjusting Journal Entries

Adjusting Journal Entries are made in an accounting system to adjust income and expense accounts so that they reflect the correct values for the accounting period.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement.

Cancelled Cheques

Cheques that have been processed by the bank, serving as proof that a payment was made.