Question: During the preparation of the bank reconciliation for Apache Grading

During the preparation of the bank reconciliation for Apache Grading Co., Sarah Ferrari, the assistant controller, discovered that Rocky Spring Bank incorrectly recorded a $610 check written by Apache Grading Co. as $160. Sarah has decided not to notify the bank but wait for the bank to detect the error. Sarah plans to record the $450 error as Other Income if the bank fails to detect the error within the next three months.
Discuss whether Sarah is behaving in a professional manner.


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  • CreatedFebruary 04, 2014
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