Which of the Following Would Normally Be Discovered as Part

question 64

Multiple Choice

Which of the following would normally be discovered as part of the audit of the bank reconciliation?

• A)Failure to bill a customer
• B)Failure to include a deposit in transit on the bank reconciliation
• C)Duplicate payment of a vendor's invoice
• D)Payment to an employee for more hours than she worked

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Definitions:

Negligent Employee

An employee who fails to exercise the degree of care considered reasonable under the circumstances, resulting in harm or loss.

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful actions of an employee or agent, if such actions occur within the scope of employment or representation.

Implied Authority

The power of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization.

Express Authority

The power explicitly given to an agent or representative through a contract or agreement to perform certain actions.