Two Months Before Year-End the Bookkeeper Erroneously Recorded the Receipt

Multiple Choice

Two months before year-end the bookkeeper erroneously recorded the receipt of a long-term bank loan by a debit to cash and a credit to sales.Which of the following is the most effective procedure for detecting this type of misstatement?

A) Analyse bank confirmation information.
B) Analyse the notes payable journal.
C) Prepare a year-end bank transfer schedule.
D) Prepare a year-end bank reconciliation.