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Kim Smith.
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Emili00
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what is year end reconciliation? whats the difference with monthly reconciliation?
Kim Smith
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Preparing monthly bank reconciliations is a control activity – like extracting a monthly trial balance and making sure it balances. (Then management checking that these monthly procedures have been carried out is an example of a monitoring control.) The procedure is the same whenever it is carried out.
The auditor is auditing financial statements at a reporting date (the accounting “year end”). So although the auditor may reperform bank reconciliations during the year (a test of control), the auditor will always perform a bank reconciliation as at the year end to obtain evidence of the cash at balance at that date (substantive procedure).
Emili00
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ouh i see! thank you !
Kim Smith
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You’re welcome!
Emili00
Kim Smith- The topic ‘bank reconciliation’ is closed to new replies.