What type of error can be discovered during bank reconciliation?

During bank reconciliation, the primary focus is on aligning the company's cash balance as reflected in its accounting records with the bank's records. This process specifically aims to identify discrepancies between these two sources of information, which can often arise from recording errors in transactions.

Recording errors may include instances where deposits or withdrawals have been incorrectly entered in the company’s books, perhaps due to a simple data input mistake, or where transactions have been overlooked entirely. These errors can lead to differences in the reported balances.

While inventory miscount, invoicing mistakes, and human resource discrepancies can have significant impacts on financial statements and operational efficiency, they are generally not identified during the standard bank reconciliation process. Inventory issues stem from physical counts and valuation methods rather than bank statements. Invoicing mistakes would typically be caught through accounts payable/receivable processes. Human resource discrepancies relate to payroll and employee records and do not involve cash transactions reflected in bank statements.

Thus, the focus of bank reconciliation squarely on cash transactions makes it the most effective process for uncovering recording errors.