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The bank reconciliation control is enhanced when a qualified employee reviews the monthly reconciliation as soon as possible after its completion: True or False

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User Kestasx
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1 Answer

2 votes

Final answer:

The bank reconciliation control is enhanced when a qualified employee reviews the monthly reconciliation promptly.

Step-by-step explanation:

The statement that the bank reconciliation control is enhanced when a qualified employee reviews the monthly reconciliation as soon as possible after its completion is true.

A bank reconciliation is a process of comparing the bank statement to the company's records to ensure they match. By having a qualified employee review the reconciliation promptly, any discrepancies or errors can be identified and rectified in a timely manner. This helps ensure that the company's financial records are accurate and reliable.

For example, if a bank reconciliation shows that the company's records indicate a higher cash balance than what is stated in the bank statement, it could indicate an error in the company's records or an unrecorded transaction. By having a qualified employee review the reconciliation, they can investigate and correct the discrepancy, thus improving the overall control and accuracy of the financial records.

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User Mad Myche
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8.4k points
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