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Computer accounting software are accurate speed than manual system
1- What the benfit of using control account reconcilition on computer accounting software?
2-On accounting sotware that is base online process transcation (e.g that on communication company),
Is the control account reconcilition can use with benfit on above system?please give example?It is important to reconcile the control account, because the asset described as ‘Receivables’ in the SOFP does not exist as a single asset: it is the total of many small assets ie each receivable balance.
If you were given a large printout of 5000 receivables, how do you know that the total is supported by the individual balances. Someone could have simply DR Receivables Control Account 100,000, CR Sales 100,000 to boost sales. When you audit the individual balances you would never notice that the 100,000 ‘false’ receivable wasn’t there and would perform no audit work on it unless you ensure that the total reconciles with the sum of the individual balances.
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