Final answer:
Regular reconciliation of accounts payable to the general ledger is crucial to avoid errors and fraud, such as overpayments and fictitious payments. Noel's timely detection of a $250,000 overpayment error exemplifies the potential risks of neglecting this accounting process.
Step-by-step explanation:
If the accounts payable ledger is not periodically reconciled to the control account in the general ledger, several types of errors or fraud might occur. Without regular reconciliation, a payment could be recorded in the accounts payable ledger but not in the control account, or vice versa. Errors may include duplications in entries, missing transactions, or incorrect amounts. This lack of oversight may also provide opportunities for fraud, such as an employee making a payment to a fictitious supplier or overpaying a supplier and receiving a kickback. The story of Noel catching a $250,000 overpayment error illustrates the kind of issues that can arise without regular reconciliation. Just like balancing a checkbook regularly can help prevent overdrafts and manage cash flow, reconciling ledgers can help a business avoid overpayment and maintain accurate financial records.