06-12-2010, 05:27 AM
Depends on the policy and procedures drafted and devised by companys management and board of governence however..for audit prespective its an effective control if u prepare it on monthly basis ..and there are two reasons to support this point of view
1) that if u prepare reconcialiation on yearly basis in case of no change how the auditor will ensure that balanfce have remained same throught the period or there has been deposits and withdrwals of huge amounts but balance at perid end is same.
2) its an effective control as per COSO framework.
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Muhammad Rehman</i>
<br />Dear Forum Fellow!
i recently joined as private company as Jr. account . i maintain company banks accounts .for audit purpose is necessary to maintain bank reconciliation on monthly basis . if there is no transaction in month .
kind regard!
muhammad rehman
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
1) that if u prepare reconcialiation on yearly basis in case of no change how the auditor will ensure that balanfce have remained same throught the period or there has been deposits and withdrwals of huge amounts but balance at perid end is same.
2) its an effective control as per COSO framework.
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Muhammad Rehman</i>
<br />Dear Forum Fellow!
i recently joined as private company as Jr. account . i maintain company banks accounts .for audit purpose is necessary to maintain bank reconciliation on monthly basis . if there is no transaction in month .
kind regard!
muhammad rehman
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
