The bank reconciliation should be prepared by:
A) someone independent of handling cash receipts and cash payments.
B) someone independent of handling or recording cash receipts.
C) someone independent of the finance manager.
D) the finance manager.

Question

Quizplus · Accepted Answer

The bank reconciliation is a key control process that helps to identify discrepancies between the balance in the bank account and the balance in the accounting records. To ensure the accuracy and reliability of this process, it is important that the person preparing the bank reconciliation is independent of handling cash receipts and cash payments. This separation of duties helps to reduce the risk of fraudulent activity and errors.

The Bank Reconciliation Should Be Prepared By