It is your second week on a new job as a bookkeeper at Mags and Bags, a small boutique store. While you’re enjoying the challenge, you’ve found a few things that don’t add up after completing some of the transactions in the store’s computerized accounting system. Store owner Margaret Posley has given you a trial balance from the end of last month. She says that her CPA told her to use it to compare to her account balances for accuracy. The bookkeeping and recordkeeping functions have not been Margaret’s favorite task as an owner, as she doesn’t understand the information. It has caused accuracy to suffer. Instructions: Begin with the template provided here: Complete a brief analysis of what the current account balances are, and what they are should be according to Margaret’s CPA. Show your calculations in the gray area in column G.After your analysis, address the following questions in the Error Correction Template: Identify which accounts are in error, and how they are related to each other. Discuss the likely causes of the errors (omission, duplication, incorrect transaction date, etc.). Looking forward, what tools will you use and actions will you take to ensure these errors don’t continue to be an issue in the company records? Draft a brief response to Margaret sharing your findings and plan for how you will correct the errors in the computerized accounting software. Be specific in your findings and recommendations for correction. Include suggestions for how these types of errors can be avoided in the future.
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