Final answer:
An auditor reconciling the accounts receivable subsidiary ledger to the general ledger control account is most likely to learn about a payment recorded to the wrong customer account or an error in carrying forward an opening balance. It would not typically detect miscalculated invoices or identify past-due accounts needing write-off.
Step-by-step explanation:
An auditor reconciling the total of the accounts receivable subsidiary ledger to the general ledger control account is a process undertaken to ensure that the detailed individual customer balances (subsidiary ledger) match the total balance recorded in the general ledger. This procedure is most effective at identifying discrepancies that result from errors in recording transactions. For instance:
- A payment from a customer being incorrectly recorded to another customer's account due to a similarity in names.
- An opening balance in a subsidiary ledger account being carried forward improperly from the last accounting period.
However, this procedure may not detect that an invoice was miscalculated since this would likely affect both the subsidiary and control accounts equally, nor would it typically reveal that an account balance is past due and requires write-off, which is more related to credit management than reconciliation.
In a related scenario demonstrating the importance of vigilance in accounting, Noel identified a significant error in an equipment bill potentially leading to an overpayment. Noel's proactive approach in communicating the error saved the company from a financial misstep, highlighting that attentiveness can prevent substantial financial errors.