The bank reconciliation
A) must be done on a daily basis if the client uses electronic banking.
B) should be performed by someone independent of the handling or recording of cash receipts.
C) should be performed by someone who handles cash disbursements.
D) ensures that no cash has been embezzled.

Question

Quizplus · Accepted Answer

It is important to have a separation of duties to prevent fraud and errors. By having someone independent of the handling or recording of cash receipts perform the bank reconciliation, it adds another layer of accountability and oversight to the process. Daily bank reconciliations are not always necessary, but should be done on a regular basis depending on the size and frequency of transactions. The bank reconciliation does not necessarily ensure that no cash has been embezzled, but it can identify discrepancies or suspicious activity that may require further investigation.

The Bank Reconciliation