All 23 Reconciliations questions
More in Reconciliations
What makes a reconciliation 'review-ready' for audit? How do you reconcile petty cash and expense floats? What is the account reconciliation process at month-end close? How do you deal with aged, unexplained reconciling items? How do you reconcile cash across the bank statement, cash book, AR receipts, and AP payments? How do you handle timing differences in month-end reconciliations? How do you reconcile accounts payable to the trial balance and supporting sub-ledgers at consolidation? How do you reconcile a clearing/suspense account to zero at period-end?
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Accounts Payable & Receivable › Reconciliations

How does reconciliation support the financial-close controls and audit?

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Answer

Reconciliations are key controls providing evidence that balances are complete and accurate. Auditors test that reconciliations are performed timely, reviewed independently, and that reconciling items are valid and cleared. Well-documented reconciliations reduce audit adjustments and support management's assertions and SOX control effectiveness.
Real-world example Auditors rely on timely, reviewed AP/AR reconciliations as evidence, reducing the substantive testing needed at year-end.

Common follow-ups: Why do auditors value reconciliations? | What is independent review of a reconciliation?

Reconciliations Invoice Processing Aging Analysis
All 23 Reconciliations questions