أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
I consider this one, otherwise how reconciliation becomes tally?
If the mistake hasn't been noticed either by the the Auditor, then where did the entry was reflected in the financial statements? There will be two possibilities
The mistake has affected the Profit and loss account,
Then - When the entry has been reversed by the bank,
The accountant should make the adjustments in the prior years Profit
The mistake has affected the Balance Sheet account,
Then - When the entry has been reversed by the bank,
The accountant should reverse the entry and the same account should be adjusted.
you cannot consider this mistake because entry has been rectified and net effect is null
Need to consider in Bank Reconciliation
Well Iam surprised that a Auditor has said to ignore it, which he very wrong. It has a lot of implication. The Bank Reconciliation is a very important to know the available fund at the end of the month. If the available funds shows a wrong figure it affects the Cash Flow. And also Bank reconciliation is done to find out if any errors or omission has been done and to detect fraud and malpractice.
So my suggestion is not to ignore it and adjust the Bank Reconciliation as per your Cash Book and intimate the Bank about the error so as to be get rectify.
It may not be considered when the amount are the same since it will offset each other. However if the amount at both credit and debit side are not the same then one needs to consider that when preparing the bank reconciliation.
The job of auditor is to detect fraud and mistakes. if bank is commenting and auditor is not detecting , it is professional negligence on the part of auditor.
It is considered because bank errors make a difference between cash balance per bank and per books
هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟