Bank statements should be reviewed and reconciled by more than one person each month.

• A. True
• B. False
• C. Only quarterly
• D. Not required

Answer: (A)

Ensuring accuracy and preventing misstatements through independent verification is the main idea here. When more than one person reviews and reconciles bank statements each month, you create a check-and-balance over cash handling. The person who handles daily cash activities shouldn’t be the sole person reconciling the bank statement; a second reviewer checks the company’s ledger against the bank’s records, verifies deposits in transit and outstanding checks, and flags timing differences or errors. This independent review helps catch mistakes or irregularities that a single person might miss, increasing reliability and reducing the opportunity for fraud. It also provides an auditable trail showing who reviewed and approved the reconciliation, which strengthens accountability. Monthly reconciliation with a second set of eyes is a standard, prudent practice for solid cash controls.