Case study: an audit-style error hunt
Who asked: Aster Quay's controller.
Question: What is supported March profit after correcting the identified errors?
Data: Check evidence, repair invoice, cutoff note, omitted bill and payroll note.
Done: Correct records, reconcile the bank and check the final adjusted profit.
Aster Quay Services has balanced books, but source review reveals errors that equality could not catch. The March rent check was entered as $540 instead of $450, a $260 routine repair was capitalized and an unpaid vendor bill was omitted. The cash sale total also includes $600 for April work, which belongs in a liability at March 31.
Use the evidence to correct each source or post a supported adjustment. Do not add a plug simply because the bank difference divides by nine. The statement starts at $5,000 and contains a $4,000 receipt, a $450 rent check and a $260 repair payment. Noncash cutoff and accrual corrections then change profit without changing the bank tie-out. The final answer is adjusted March profit.
Balanced books can still contain wrong accounts, omitted liabilities and revenue in the wrong period.
Correct supported errors and connect the bank, liabilities and profit.