What is an important benefit of independent preparation of bank reconciliations?

Question

Quizplus · Accepted Answer

Independent preparation of bank reconciliations allows for internal verification of cash receipt and disbursement transactions. This can help detect errors or fraudulent activity before they become larger issues. It also provides an opportunity for the company to identify any discrepancies between their records and the bank's records, and to investigate and resolve those discrepancies in a timely manner. Option A may be a benefit, but it only addresses one specific issue and is not as comprehensive as option C. Option B is not a benefit of independent preparation of bank reconciliations, as it would actually be a duplication of effort since the bank already reconciles their records. Option D is not a complete benefit because it only addresses one aspect of the reconciliation process.

What Is an Important Benefit of Independent Preparation of Bank