A lot has been written about how to select a new audit firm, including lots of examples for requests for proposals (RFP) and example scoring criteria.
One of the most important elements of the auditor selection process, however, that not much has been written about, is the reference checking for new possible audit firms.
So, below we describe an approach and provide a list of sample questions to ask during reference checking when you’re in the process of selecting a new audit firm.
An important task for any finance department is account reconciliation.
Items recorded as assets and liabilities at some point usually get paid, collected, depreciated or disposed; however, the related accounting entry to remove these items from the balance sheet does not always get made.
For example, an operating department may dispose of a capital asset without notifying the finance department or a cash collection may have been recorded as a revenue instead of an offset to the receivable. Without regular account analyses, these types of errors can accumulate on the balance sheet causing both balance sheet accounts and revenues/expenses to be misstated by a significant amount.
See the 5 steps to good account reconciliation procedure below.
ConTroll - The Government