During the preparation of the bank reconciliation for Regal Concepts Co., Misty Watts, the assistant controller, discovered

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During the preparation of the bank reconciliation for Regal Concepts Co., Misty Watts, the assistant controller, discovered that Windsor National Bank incorrectly recorded a $15,750 check written by Regal Concepts Co. as $1,575. Misty has decided not to notify the bank but wait for the bank to detect the error. Misty plans to record the $14,175 error as other income if the bank fails to detect the error within the next three months. Discuss whether Misty is behaving in a professional manner.

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Financial and Managerial Accounting

ISBN: 978-0538480895

11th Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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