[Marc]

If this makes any difference, I’m looking at this from the eyes of an auditor rather than the eyes of the preparer.

While testing the control for approval of reconciliations, I was looking for the reconciliation and approval, etc for each account that was selected. The test template also asks if there is any support available.

I may be totally wrong, but I think that each reconciliation should be accompanied with sort of a schedule that would tell the preparer that “This current balance in the account makes sense”.

Examples could be:

• (most basic is) bank statement – along with any documentation to support changes,

• Debt maturity schedule that shows when debt matures or what interest payments are due

• Sub ledgers

• Accrual calculation schedule, etc.

Otherwise, how would anyone know from simply breaking out the account activity of an account whether the Account balance is appropriate or not?

I received pushback from my client saying that the test I am performing should not require any such schedules, and that I should only be looking for the reconciliation, which is essentially a roll forward of the account, with details of what the activity categories were And the associated approval.

In addition, my supervisor agreed with the client. (We are the in house internal audit department, so were not consultants getting paid only to please the client).

What do you think? Should each account reconciliation come with a schedule of some sort or an external piece of information, as I was thinking? Or am I asking for too much?

Thanks!

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Passed And got my license too ..

[okcpa2015]

There is a difference between a simple roll forward (just debit and credits) and what makes up the contents of the account.

A proper account reconciliation is just a description of a basket of goods. A prepaid account rec should probably be supported by invoices, receivables should be supported by an aging, and something like an accrual should be supported by a calculation or other supporting documents (like unvouchered invoices).

The “what makes up this basket of goods” approach could help you better explain your objective.

FAR - 91
REG - 88
AUD - 98
BEC - 88

[Anonymous]

When I did account rec's, we had screenshots of invoices or email approvals for non-scheduled expenditures, or tied them out to the schedules for others.

[Author]

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