Generally, we do not expect the amount in the client’saccounting system for a cash account (e.g., operating cash balanceas of 12/31/18 = $508,219.33) to match the amount that thefinancial institution confirms (e.g., “our records show that yourclient’s 12/31/18 bank account was $478,921.54). Why do wegenerally not expect the financial institutions to confirm theexact amount reported in the client’s accounting system? Anotherway of asking this question is: Why are there reconcilingdifferences between the client and financial institution’srecords?
