Reconciliations are critical control activities which involve the comparison of two sets of related records or balances from different sources. Effective reconciliations identify differences between the records or balances. When differences are found, one should then investigate why the differences exist (e.g., timing differences or errors), and resolve the differences in a timely manner. Documentation resolving the differences should be retained.
Supervisors should periodically review key reconciliations to verify that they were performed on schedule and that all differences were adequately explained and resolved.
Date this Avoiding Pitfall was most recently published: 12/6/2019