๐ ๐ฏ๐ฎ๐ป๐ธ ๐ฟ๐ฒ๐ฐ๐ผ๐ป๐ฐ๐ถ๐น๐ถ๐ฎ๐๐ถ๐ผ๐ป ๐ฎ๐๐ฑ๐ถ๐ involves a structured examination comparing a company’s internal financial records with the details provided in its bank statements. The primary objective of this audit is to verify that the company’s accounting records precisely mirror its financial transactions and to confirm the absence of discrepancies between the bank’s records and the company’s financial books.
It is vital to ensure the proper execution of these audits. Internally, this process should be conducted monthly, while external auditors should perform it annually.
๐๐ก๐๐๐ค๐ฅ๐ข๐ฌ๐ญ ๐๐จ๐ซ ๐๐๐ง๐ค ๐๐๐๐จ๐ง๐๐ข๐ฅ๐ข๐๐ญ๐ข๐จ๐ง ๐๐ฎ๐๐ข๐ญ
โ Gather your bank statement, general ledger, and bank reconciliation documents for the month youโre auditing.
โ Compare the final figures on your reconciliation document to that accountโs bank statement. The amounts should match.
โ Check the final figures on your bank reconciliation document against your general ledger totals and ensure they match.
โ Calculate the difference between your bank statement ending balance and your general ledger total. Your bank statement should properly reflect the difference.
โ Match transactions from your bank statement and general ledger account. Each transaction in one document should have a corresponding transaction in the other. To avoid confusion, mark these off as you go.
โ Highlight any non-matching transactions between your general ledger and bank statement. These items are โreconcilingโ and should be accounted for in your bank reconciliation document with a full explanation for the discrepancy. These items are usually the result of funds that have not yet cleared or checks that are waiting to be cleared.
โ Double-check that the difference between your bank statement and the general ledger is properly accounted for.