Question

In: Accounting

what is the employer needs to do when a discrepancy statement is received

what is the employer needs to do when a discrepancy statement is received

Solutions

Expert Solution

Discrepancy : is defined as any kind of difference or deficiency in the actual amount and the amount which is in the statement. It is always considered to be something which is to be corrected or otherwise it may lead to false results.

Discrepancy in the financial statements may lead to wrong net profits.
Example : discrepancy is the difference between the bank statement and your own account records.

Now the question arises that, what is the employer needs to do when a discrepancy statement is received.

The employer is now required to find out the reason for discrepancy and work on it. The employer is first person to receive statement of accounts so he is required to correct such statements and remove the discrepancies (if any).
Employer is also responsible for the payment of its employees, so if their is discrepancy in statement then his employees may be paid more or less and this may cause the changes in expense which are to be shown in the financial statements.
The employer is required to manage all the discrepancies whenever he faces and correct them as soon as possible.


Related Solutions

When confronted with a discrepancy in the plans and specifications, what form do you use to...
When confronted with a discrepancy in the plans and specifications, what form do you use to get an answer from the architect? 1- Submittal 2- AIA Form 101 3- RFI 4- RFP
what is the importance of statistical discrepancy?
what is the importance of statistical discrepancy?
What should you do when identifying and discussing future computing needs?
What should you do when identifying and discussing future computing needs?
Johnny received a $2,100 grant from his employer and, as required by his employer, used all...
Johnny received a $2,100 grant from his employer and, as required by his employer, used all of the money for tuition and fees to take three graduate-school courses during the period September 1 to December 31 of the current year. Johnny is not a candidate for a degree and has never received a scholarship or fellowship grant before. He had previously met the minimum educational requirements for his employment position; however, due to new requirements established by his employer, these...
Outline five (5) reasons for the discrepancy between the cash book and the bank statement.
Outline five (5) reasons for the discrepancy between the cash book and the bank statement.
What does the following statement tell a C compiler to do, and when does it do...
What does the following statement tell a C compiler to do, and when does it do it? #define UCHAR unsigned char
When an economy is in a recession, the Fed needs to do a (an) ________ monetary...
When an economy is in a recession, the Fed needs to do a (an) ________ monetary policy. This policy would ________ prices. A) expansionary; lower B) expansionary; raise C) contractionary; lower D) contractionary; raise
Do you agree the employer usually has the upper hand when it comes to establishing the...
Do you agree the employer usually has the upper hand when it comes to establishing the employment relationship? Why might the employee have maximum power over the employer?
what can you do to strengthen the union practices as it relates to the employer? what...
what can you do to strengthen the union practices as it relates to the employer? what can you do to strengthen the employers practice as it relates to the union?
When Pharoah Holdings Ltd. received its bank statement for the month of October, it showed that...
When Pharoah Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $14,849 as at October 31. Pharoah’s general ledger showed a cash balance of $17,390 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. Bank service and credit card charges for the month were $7. 2. A cheque, in the amount of $520, from one of Pharoah’s customers that...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT