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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
Thread Title: Suspense Account Audit
Created On Wednesday January 30, 2008 11:30 AM
  Suspense Account Audit
  Suspense Account Audit
  Suspense Account Audit


Temmy


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Joined: Oct 2007

Wednesday January 30, 2008 11:30 AM

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It will be appreciated if anyone can advise on the best practice for reconciling the balance on the suspense account. I work in not-for- profit organization and I discovered that suspense accounts are not reconciled for as long as it takes to research the source of the fund or donation.

Comment on the best practice or standard will be appreciated


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Larry Hubbard


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Friday February 15, 2008 8:10 AM

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Temmy, since no one else replied, I thought I would.

I'd look for a policy which states the need and frequency for this and other reconciliations. If there is no policy, then I'd be suggesting one be established, then audit against that.

Most would likely say major suspense accounts are reconciled monthly, but I dont know if that is a Best Practice or a Common Practice.

To me, the real weakness in control is that there is no policy. I'd start there.

Larry

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Larry's Audit Q&A Blog

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Thedude


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Friday February 15, 2008 2:50 PM

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In the end the best practice would likely be not to have suspense account. But since that is probably not the help you were looking for. What you should consider is how much activity is in fact going through the account. If it is made up of primarily immaterial and insignificant items.. you don't have to worry about it too much. If on the other hand there is significant transactions... then it should be reconciled just as frequently as all of the other accounts (i.e. hopefully monthly).

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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
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