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20 February 2017
Bank Reconciliation Report.
Among the numerous objectives of an organization, is to maximize profits through the
minimization of costs. Often, some of the costs are internal. Occasionally, the costs are as a
result of errors in recording transactions or even theft of cash. Consequently, it is necessary for
an organization to reconcile its financial books through qualified personnel. Reconciliation is the
process of comparing recorded transactions against the bank statements.
Through cash reconciliation, it is easier to identify discrepancies caused by either, errors,
employee theft, software malfunctions, or electronic charges. Through reconciliation, the
organization is able to timely correct any errors and other irregularities. Also, reconciliation
allows timely adjustments for deposits and charges.
Finally, after identifying reconciliation as the remedy for internal cash control, it is important to
follow the appropriate reconciliation steps. First, reconcile the total receipts for the stipulated
period against the total deposits. Confirm that the interest earned is receipted. Second, compare
the total disbursements to the total claims. This is done by ensuring that the bank fees are entered
in the accounting records. By following the steps, the auditor is assured of subjective ...
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