We assumed that the company’s books balanced. They didn’t and never had.
Within days of our arrival to rescue the business, Neil, the very good accountant who had accompanied me on the mission said to me, “I just found the ‘Mistakes Card’.”
“What?” I probably laughed.
“If the trial balance doesn’t actually balance at the end of the month, they just include a number in what has been called the ‘Mistakes Card.’ So then all is well and the trial balance balances.”
“So all the accounts are at best incorrect and at worst rubbish.”