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Hi tutor,
This has been bugging me for a while now. I’m confused with the meaning of the phrases below:
a) Reconciling items = a difference arises when reconciling XX with YY
b) Reconciled items = items on XX agree with items on YY
c) Unreconciled differences = same as part A
Have I got them right?
For example, auditors need to reconcile a bank statement balance to the cash acount.
If the amounts are different they look for reconciling items ie the causes of the differences or items that need to be takenn into account to make the balances agree.
For example, bank charges in the statement but not in cash account or timing differences between a payment recorded in the cash account but not yet processed by the bank.
These amounts are the reconciling items. Unreconciled differences are when amounts have not been brought into agreement and presumably implies there are errors somewhere in the records.
Reconciled items are eh payables balances, where reconciliation has been achieved.
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