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f reconciliation as a control is properly implemented at Company, Inc. it would detect all of the following errors,  except; A) Transactions at Company, Inc. were appropriately posted to individual subsidiary accounts but because of a computer malfunction, some of the transactions were not posted to the master account B) Company, Inc. has experienced inventory shrinkage (theft) that has caused the perpetual inventory records to be overstated C) Three shipments at Company, Inc were never invoiced because employees in the shipping room colluded with a shipper to deliver the goods to their own private companies for resale and they never recorded the shipments on any documents

f reconciliation as a control is properly implemented at Company, Inc. it would detect all of the following errors,  except; A) Transactions at Company, Inc. were appropriately posted to individual subsidiary accounts but because of a computer malfunction, some of the transactions were not posted to the master account B) Company, Inc. has experienced inventory shrinkage (theft) that has caused the perpetual inventory records to be overstated C) Three shipments at Company, Inc were never invoiced because employees in the shipping room colluded with a shipper to deliver the goods to their own private companies for resale and they never recorded the shipments on any documents

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter7A: Internal Controls
Section: Chapter Questions
Problem 4SPB
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If reconciliation as a control is properly implemented at Company, Inc. it would detect all of the following errors,  except;

A) Transactions at Company, Inc. were appropriately posted to individual subsidiary accounts but because of a computer malfunction, some of the transactions were not posted to the master account

B) Company, Inc. has experienced inventory shrinkage (theft) that has caused the perpetual inventory records to be overstated

C) Three shipments at Company, Inc were never invoiced because employees in the shipping room colluded with a shipper to deliver the goods to their own private companies for resale and they never recorded the shipments on any documents 

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