Financial Operations Ratio-meaning and formula

Substantive procedures for verification of bank reconciliation statements

The following are substantive procedures for verification of bank reconciliation statements:

  • Trace and agree balances pee books of accounts (ledger or bank book) as appearing in the bank reconciliation statement with the general ledger/ bank book.
  • Trace and agree balances as per bank statement as appearing in the bank reconciliation statement with the bank statements.
  • Check arthmetical accuracy of recommendation statements.
  • Check subsequent clearance of current months reconciling items.
  • Trace reconciling items appearing in the previous month’s bank reconciliation into current months ledger/ bank statement/ bank reconciliation statement.
  • Review and discuss long outstanding items appearing in the bank reconciliation statement.
  • Ensure that all outstanding items requiring adjustment are properly accounted for in the books of accounts.

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