Review this portion of the book for information about the elements of the account reconciliation, how to complete this closing procedure, and requirements and best practices related to this process.

Account reconciliation is a fundamental accounting process that ensures the integrity of financial transactions. Reconciliations are a review of operating reports to ensure that the balances posted to an account are those that were approved by the fiscal officer, or their delegate, and that they are allowable and appropriate. It is essential to understand this process from an accounting perspective as it ensures compliance with accounting standards and regulations, provides transparency in financial reporting, discovers accounting errors and inaccuracies, ensures completeness, and detects incidents of theft or fraud. By frequently performing account reconciliations, IU can maintain credibility, make informed financial decisions, demonstrate accountability to stakeholders, and maintain compliance with regulatory requirements.