Bank Reconciliation
Control that compares bank records with an organization's cash ledger, explains differences, and records missing book entries.
Bank statements record posted account activity; reconciliation explains differences between bank and internal cash records.
A bank statement is the bank’s periodic record of posted balances, transactions, interest, and fees. It is useful source evidence, but it does not by itself explain pending activity, deposits in transit, outstanding checks, or differences in an organization’s books.
Bank reconciliation performs that second task. It matches the bank record to internal cash records, identifies timing differences and missing entries, and escalates unexplained items.
Use this branch when reviewing statement cutoffs, posted versus available balances, cash-reporting support, returned items, fees, or reconciliation controls. If the need is independent third-party evidence rather than a periodic account record, use Bank Confirmation Letter.
Do not treat a statement balance as current available cash or an unreconciled download as completed control evidence.
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Control that compares bank records with an organization's cash ledger, explains differences, and records missing book entries.
A bank statement records posted account activity, balances, interest, and fees for a defined statement period.