Course Description
Mastering Correction of Accounting Errors
Course Overview
This course will emphasize the concepts of and develop understanding of bank reconciliations, moving onto uncovering and correcting errors in a trial balance. Our objective is to emphasize the concepts of and develop understanding of bank reconciliations, moving onto uncovering and correcting errors in a trial balance. • Defining and Methods of Discovering Accounting Errors • Bank Reconciliation • Using the Unadjusted Trial Balance to Discover Errors • Correcting Current Period Errors with Accruals and Deferrals
Course Outline
1 - Where Errors Occur and How They Are Found
• Nine Kinds of Accounting Errors
• Five Routine Accounting Procedures when Accounting Errors are Found
•
2 - The Bank Reconciliation
• How Critical the Controls for Cash Are
• Important Control: the Bank Reconciliation (“Bank Rec”)
• Reasons for differences between the
• Bank and Book Cash Balance
• Items the Company knows about but the Bank does not
• Items the Bank knows of but not the company NSF checks, collections made by the bank, and bank charges
• The Bank Rec Format
• Required Journal Entries for Adjustments to the Company Cash Account Balance
•
3 - Finding and Correcting Errors Using The Unadjusted Trial Balance
• Eyeball the Trial Balance to verify that all Account Balances are Normal
• Explanation of Doubling Errors
• How Transposition and Slide Errors are detected by finding out if the difference between Total Debits and Credits is divisible by 9
• Examples of Transposition Errors
• Summary of ways to find errors that may not cause an imbalance between total debits and credits
•
4 - Correcting Current Period Accrual Errors
• Review of Accruals and the Generic Journal Entries to Accrue Revenues and Expenses
• The Three Types of Revenue and Expense Accrual Errors
• Each kind of Accrued Revenue Error with the Journal Entry to correct it
• Each kind of Accrued Expense Error with the Journal Entry to correct it
•
5 - Correcting Current Period Deferral Errors
• The Two Adjusting Entries for Deferred Expenses, Dependent on whether a Prepaid Expense was recorded in a Prepaid (Asset) Account or Expense Account
• The Three Types of Deferred Expense Errors when the original entry was made to a Prepaid Account: no AJE, too much expense recognized, and too little expense recognized
• Each kind of Deferred Expense error when the original entry was made to an expense account with the Journal Entry to correct it
• The Three Types of Deferred Revenue Errors when the original entry was made to an Unearned Revenue Account: no AJE, too much Accrued Revenue, and too little Accrued Revenue
• The three types of Deferred Revenue Errors when the original entry was made to a Revenue Account: no AJE, too much revenue recognized, and too little revenue recognized
Agenda
Course Overview
This course will emphasize the concepts of and develop understanding of bank reconciliations, moving onto uncovering and correcting errors in a trial balance. Our objective is to emphasize the concepts of and develop understanding of bank reconciliations, moving onto uncovering and correcting errors in a trial balance. • Defining and Methods of Discovering Accounting Errors • Bank Reconciliation • Using the Unadjusted Trial Balance to Discover Errors • Correcting Current Period Errors with Accruals and Deferrals
Course Outline
1 - Where Errors Occur and How They Are Found
• Nine Kinds of Accounting Errors
• Five Routine Accounting Procedures when Accounting Errors are Found
•
2 - The Bank Reconciliation
• How Critical the Controls for Cash Are
• Important Control: the Bank Reconciliation (“Bank Rec”)
• Reasons for differences between the
• Bank and Book Cash Balance
• Items the Company knows about but the Bank does not
• Items the Bank knows of but not the company NSF checks, collections made by the bank, and bank charges
• The Bank Rec Format
• Required Journal Entries for Adjustments to the Company Cash Account Balance
•
3 - Finding and Correcting Errors Using The Unadjusted Trial Balance
• Eyeball the Trial Balance to verify that all Account Balances are Normal
• Explanation of Doubling Errors
• How Transposition and Slide Errors are detected by finding out if the difference between Total Debits and Credits is divisible by 9
• Examples of Transposition Errors
• Summary of ways to find errors that may not cause an imbalance between total debits and credits
•
4 - Correcting Current Period Accrual Errors
• Review of Accruals and the Generic Journal Entries to Accrue Revenues and Expenses
• The Three Types of Revenue and Expense Accrual Errors
• Each kind of Accrued Revenue Error with the Journal Entry to correct it
• Each kind of Accrued Expense Error with the Journal Entry to correct it
•
5 - Correcting Current Period Deferral Errors
• The Two Adjusting Entries for Deferred Expenses, Dependent on whether a Prepaid Expense was recorded in a Prepaid (Asset) Account or Expense Account
• The Three Types of Deferred Expense Errors when the original entry was made to a Prepaid Account: no AJE, too much expense recognized, and too little expense recognized
• Each kind of Deferred Expense error when the original entry was made to an expense account with the Journal Entry to correct it
• The Three Types of Deferred Revenue Errors when the original entry was made to an Unearned Revenue Account: no AJE, too much Accrued Revenue, and too little Accrued Revenue
• The three types of Deferred Revenue Errors when the original entry was made to a Revenue Account: no AJE, too much revenue recognized, and too little revenue recognized
Comments
Virtual Mastering Correction of Accounting Errors Online Live training option
Imagine an industry-leading classroom training experience from wherever you have access to the Internet.
The Virtual Online Live events listed here gives you an effective and proven online virtual learning experience with the freedom to attend virtually from anywhere.
There is also an option of experiencing Online Live from one of the many national partner centers where a computer and headset will be provided for you.
This rich and engaging virtual classroom environment lets you conveniently interact with instructors and other students.
You will hear and see your instructor as they teach the course and answer your questions via voice or text.
Choose the online live virtual training option and you can access the recorded version even after the class has finished.
The onDemand labs give you access to the same client and server technologies covered in class so you can test, apply and hone your skills by accessing the labs before and even after the class.
Technical Requirements: a computer or laptop with a modern browser and high speed internet access along with one or two monitors.