Finance and Accounting - Accounting Close
Effectiveness and efficiency of operations
A. Cycle time is reduced.
- Are all manually produced, recurring entries automated where possible?
- Are the reasons and root causes behind errors analyzed?
Reliability of financial reporting
A. Recorded balances are substantiated.
- Are significant balances confirmed with third parties?
- Are general ledger balances reconciled regularly to subsidiary ledger balances?
- Is journal entry activity reports compared periodically to supporting documentation?
- Are recorded balances and activity compared periodically to outside sources of information?
B. Recorded balances are evaluated.
- Are all balances subject to evaluation reviewed quarterly to determine any necessary adjustments?
- Are reliable external sources used to help with valuations where appropriate?
- Are reconciliations reviewed for mechanical and clerical accuracy?
- Are the deadlines for reconciliations communicated in writing and key reconciliation
procedures documented?