A bank reconciliation review should leave a clear record of what the reviewer checked, what remained uncertain and who will resolve it. A signature alone gives the next person little to work with.
The review can stay focused. Start with the source balances, examine the reconciling items and record a decision supported by the available evidence. Adjust the depth of review to the account's risk, activity and your organization's policies.
Start with the correct account and period
Confirm the bank account, statement period and general-ledger account. Tie the statement ending balance to the reconciliation and the book balance to the ledger for the same date. Check that the supporting reports are complete and current.
Where practical, the reviewer should obtain the statement through their own authorized access or another controlled source. A spreadsheet copied from last month should not become the only evidence of this month's bank balance.
Recalculate the bridge between the two balances. Ask whether differences belong in this reconciliation and whether any ledger adjustment has actually been posted. A proposed entry and a posted entry are different states.
Give old items a specific next action
Age outstanding checks, deposits in transit and other reconciling items. Compare them with the prior month so that additions, cleared items and repeated exceptions are visible.
An older item needs a factual explanation. It does not establish misconduct. For a deposit in transit, look for evidence of the deposit and subsequent bank activity. For an outstanding check, establish whether it remains uncashed, was voided or replaced, or requires further follow-up.
Do not reverse an item solely because it is old. The appropriate treatment depends on the facts, applicable requirements and your organization's accounting policies. Assign the question to someone who can establish those facts.
Record the review with a short worked example
Consider this fictional month-end reconciliation:
| Reconciliation line | Amount |
|---|---|
| Bank statement balance | $82,100 |
| Add deposits in transit | $2,600 |
| Subtract outstanding checks | ($6,300) |
| Adjusted bank balance | $78,400 |
| General-ledger balance | $78,400 |
| Unexplained difference | $0 |
One outstanding check for $900 has appeared for four months. The totals agree, but that item's status still needs to be established.
A useful review note could read:
October 31 balances tied to the bank statement and general ledger. Arithmetic checked. Outstanding check 1048, $900, remains open from June. Accounts payable will confirm whether the original remains uncashed and whether a replacement exists by November 6. No correcting entry approved pending that evidence. Follow-up remains open.
The dates, check and amounts are illustrative. The useful part is the decision trail: the reviewer records the work performed, the unresolved fact, the owner, the deadline and the posting decision.
Keep approval and follow-up visible
Use a small review log with these fields:
- Account and period
- Preparer and preparation date
- Reviewer and review date
- Evidence reviewed and where it is retained
- Exceptions and their aging
- Required action, owner and due date
- Approval decision and any conditions
- Resolution evidence and closure date
A reconciliation may tie while an exception remains open. Keep that exception visible under the organization's review policy. If the unresolved item prevents a supported approval, record that conclusion and escalate it to the person responsible for the close.
Close the item when the evidence supports closure. Preserve the explanation and any approved adjustment so that next month's preparer can follow the history without reconstructing it.
For a broader monthly review, Syntera's Small-Business Month-End Anti-Fraud Review Checklist organizes owner questions and follow-up across bank, vendor, payroll and card activity.
Control background and source
GAO's 2025 Green Book describes reconciliations as comparing records, explaining differences and identifying needed corrections. Its documentation and remediation principles also support recording responsibilities and follow-up. This article's method and fictional example are Syntera's practical application of those ideas, rather than a prescribed GAO procedure. The Green Book sets standards for federal agencies; this article does not assert that a private business must adopt it.
GAO, Standards for Internal Control in the Federal Government (2025): Appendix II, printed pages 101–106; paragraphs 12.02–12.04 and 17.05–17.06. Source checked October 28, 2026.
This article offers a practical internal-review method. It is not an audit or assurance engagement and does not establish that every transaction is correct or that fraud has been prevented or detected.