Account reconciliation is a critical accounting procedure used to ensure that balances in financial records correspond with the actual account balances, typically those presented in bank statements. It is essential for maintaining the accuracy and integrity of a company's financial data.
Reconciliation is the process of ensuring that two sets of records (usually the balances of two accounts) are in agreement. It is used to ensure the accuracy and consistency of financial records.
An audit test that takes a few transactions from the records of a business and follows them through every stage of the accounting system to ensure accuracy and compliance.
