Balance Sheet Reconcilations w/o SoD - Urgency 2294

  • Concerning Balance Sheet Reconcilations, I changed employer and the new one has no SoD but considers balance sheets reconcilaition as major risk if not performed. My question is should not SoD be established first - I am the one doing it all from cash to journal entries and reporting I don’t consider reconciliations to be a mitigiting control when we have not met the SoD requirements. The tester has not requested nor been provided with supporting documents but considers if I was to provided an excel of recs to be enough.
    Can you shed light? Should it be done when there is no SoD and Legder is not being tested against sub-ledger?

  • You are right to point out that SOD is essential. Without SOD your reconciliations could easily be undermined.
    To be frank without both SOD and balance sheet reconciliations in place your organisation is running some major risks and SOX-compliance is the least of them.

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