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Agree the balance per the bank reconciliation to an original year-end bank statement and to the bank confirmation letter.
sir, what is the point of agreeing balance per bank reconciliation to original YE bank statement and to confirmation latter.
Thanks.
Because the bank reconciliation is just a schedule prepared by the client – it could be any figure to make the reconciliation “work” (i.e. show timing difference etc to agree to the cash book). The auditor must therefore agree the “starting point” of the reconciliation to an external source.
so balance per the bank reconciliation means balance per bank statement (at the top) before any adjustment of any reconciling items.
Yes …. reconciled to balance per cash book (adjusted as necessary – e.g. for cash book errors) – which should = bank a/c balance in general ledger = bank balance per SoFP
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