1 - General Ledger Account Reconciliations Basic building...

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Unformatted text preview: General Ledger Account Reconciliations Basic building blocks for good accounting controls April 19, 2005 IIA Presentation 1 Why are account reconciliations important? Assure adherence to accounting policies Document general ledger account balances for: – Validity – Appropriateness – Adequacy Identify accounting errors that should be corrected 2 External Auditor’s Basic Process Review business processes Identify key controls Assess adherence to company policies and procedures Document management’s control Validate the balance sheet 3 Making account reconciliations a key control process Teach staff the basics of preparing good account reconciliations Provide standard formats to assure consistency and completeness Have easily accessible policies and procedures – in understandable terms Review and monitor …and review …and monitor …and review …and monitor … 4 Teach good account reconciliation techniques Identify purpose of the account Provide complete descriptions of reconciling items Prepare reconciliations on a timely basis Make correcting entries as soon as practical Communicate serious errors immediately 5 Provide standard formats and/ or templates Clearly show expectations for what information is necessary Identify the GL Balance and show that it has been explained and substantiated Clearly show who was involved in the process of Preparing ­ Approving ­ Reviewing 6 Procedure and policy documentation readily available Policies make sure you are in compliance with GAAP Procedures make sure there is consistency in completing activity Having them available immediately during the reconciliation process can improve efficiency, accuracy and consistent compliance with your policies 7 Now that you have good account reconciliations – monitor regularly Create priorities – Key accounts – Non­key accounts Check status regularly – Are they complete? – Are they correct? Provide timely feedback to staff to improve the process 8 Software to help with the account reconciliation process RecWizard GL Compliance Manager – – – – Tutorial Templates Policy and procedure documentation Monitoring reports Two versions available depending on your company size and number of users 9 RecWizard GL Compliance Manager – Professional Desktop version for all Windows PCs Can support up to 10 users per database – the database must be accessible on your network to those users Unlimited number of databases that can be created 10 RecWizard GL Compliance Manager – Enterprise Edition Full featured program for installation on your company’s intranet Unlimited users – accounts – divisions – companies Electronic data storage of supporting documents Complete process management including email warnings and follow up 11 FREE Trial CD at our Booth For more details about RecWizard GL Compliance Manager, contact us: Jeff Adler, President Account­Reconciliations.com, Inc. 732.938.7000 [email protected] 12 ...
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This note was uploaded on 07/16/2011 for the course ECON 2154 taught by Professor Boyer during the Winter '10 term at UWO.

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