Audit Program: Bank Reconciliation Process
Date:
Auditor:
Audit Objectives and Procedures. (Objectives in italic) 1. To ensure bank account reconciliations were prepared accurately and within the required corporate timeframe. Obtain a copy of all corporate bank accounts (open and closed) to determine the number of accounts maintained. Review the accounts noted on the listing above and determine if they have been prepared in a timely basis (the corporate standard is to have bank account reconciliations completed no later than 30 days after the end of each period). Select a sample of bank reconciliations and confirm the reconciling items are accurate by tracing these reconciling items back to the applicable bank statements, ShopKo reports, source documents, etc.
Notes
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To determine if only authorized teammates have access to the bank account reconciliation information stored on the network. Request, obtain and review a listing from Information Services that details all teammates with access to the bank account reconciliation information stored on the network Scan this listing for reasonableness and determine if all teammates included on this listing should be authorized access to the folder. To ensure adequate cross training has been achieved for job duties related to the preparation of bank account reconciliations. Interview teammates involved with process (preparing, approving, etc.) of bank reconciliations and determine which teammates have been trained in this area, have knowledge of the process, etc. If multiple teammates are trained on the above duties, then 1 of 3
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attempt to interview those teammates to gain an understanding of their actual knowledge in the above areas. Determine through these interviews if an adequate level of cross training exists.
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To ensure formally documented bank account reconciliation procedures exist and are maintained to reflect the current process. Request copies of all corporate policies, procedures, etc. that detail out procedures utilized to complete corporate bank account reconciliations. Review the applicable policies and procedures and determine if these documents accurately reflect the current procedures that are required to prepare corporate bank accounts. Conduct interviews with teammates in the bank reconcilation area. Randomly select one bank account reconciliation and perform a walkthrough of the entire process (from start to finish). Determine if the walkthrough is representative of the process described in the applicable procedure manual. To verify there was an overall adequate segregation of duties within the area of bank account reconciliations. Request and obtain a copy of the organizational chart – if available – for this area to understand work responsibilities of teammates within the bank reconciliation area. Determine through interviews with various teammates “what” job duties they perform, “what” job duties/functions they have been authorized and/or have access to do, etc. For example, confirm with the teammate(s) that prepares bank accounts that they don’t handle checks rec’d in the mail, etc. To ensure a standard reconciliation format was used for preparing bank account reconciliations. Request from management copies of the various types of bank account reconciliations (if this has not already been done) and compare and contrast 2 of 3
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the format used for reconciling corporate bank account reconciliations. Determine if the formats used for preparing these reconciliations are universal and similar in format. To determine if corporate bank account reconciliations were approved, tracked, and monitored by the appropriate levels of management. Determine through interviews with Management what type of approval structure exists for reviewing and approving that reconciliations are completed as required. If documentation of this approval structure exists request a copy from Management. Request and obtain from Management all available exception reporting related to bank account reconciliations.
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