Balance sheet account reconciliation is an underappreciated internal control over financial reporting. Accelerating the process can help companies identify and correct errors before they file their reports with any statutory authorities
Companies need to reconcile all accounts that could contain a significant or material misstatement and post all necessary adjustments to the general ledger in a timely manner rather than allowing their external auditor/audit committee to identify such misstatements during its review of the company’s financials
We undertake the process of Balance Sheet Accounts Reconciliation of the companies and our process includes the following activities:
- Sending the request letters to all the outside parties of an entity covered under various heads of BS by asking the SOA
- Following up for the SOA & clarifications where ever required from all those parties in their SOA
- Taking out the SOA from the books of the targeted entity
- Conducting the reconciliation between both the statements
- In case, if it is not matching on both the ends then identifying the possible reasons for the difference in a standard template in consultation with the owner
- Adopting the risk based approach on each account recon assignment
- Preparing the documents for each account recon and duly signed by the reconciliatory and counter signed by a person from the targeted entity by accepting the reconciliation process.
- Summarizing the outcome and report the concerned nominated person form the targeted entity