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.