Finding Text
Preparation of Bank Reconciliation Our audit revealed that the organization does not prepare a formal monthly bank reconciliation for all cash accounts including the reserve accounts. In addition, we noted several transactions that were not recorded properly to the general ledger. A strong system of internal controls incorporated monthly bank reconciliations which should be prepared and agreed to the general ledger. In addition, any discrepancies should be investigated and resolved in a timely manner. Failure to reconcile cash accounts monthly could result in errors or irregularities to go undetected. Recommendation We recommend that management prepare monthly bank reconciliation on timely basis and investigate and discrepancies from the general ledger.